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Can you summarize AZRS 47-4303?
When items subject to notice, stop-payment order, legal process or setoff; order in which items may be charged or certified
Short Summary
This legal document, found in the Arizona Revised Statutes under the Uniform Commercial Code section on BANK DEPOSITS AND COLLECTIONS, specifies the circumstances under which knowledge, notice, stop-payment orders, legal processes, or setoffs received by a payor bank will not terminate, suspend, or modify the bank’s right or duty to pay an item or charge its customer’s account. The document outlines that if any of these actions are received or served after certain events occur, such as the bank accepting or certifying the item, paying the item in cash, settling for the item without the right to revoke the settlement, becoming accountable for the amount of the item, or reaching a cutoff hour for checks, the bank’s obligations remain unaffected. Additionally, the document states that items may be accepted, paid, certified, or charged to the customer’s account in any order, except as specified in subsection A. The document applies to payor banks and their customers, and no exemptions or penalties are mentioned.
Whom does it apply to?
Payor banks and their customers
What does it govern?
Items subject to notice, stop-payment order, legal process or setoff; order in which items may be charged or certified
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Arizona