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Can you summarize CORS 4-4-303?
COLLECTION OF ITEMS - PAYOR BANKS > 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, part of the Colorado Revised Statutes under the Uniform Commercial Code, pertains to the collection of items by payor banks. It establishes the order in which items may be charged or certified by the bank. The document states that any knowledge, notice, stop-payment order, legal process, or setoff received by the payor bank comes too late to terminate, suspend, or modify the bank’s right or duty to pay an item or charge the customer’s account if certain conditions are met. These conditions include 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 document also mentions that items may be accepted, paid, certified, or charged to the customer’s account in any order, subject to certain provisions. Overall, this document provides guidelines for the order of charging or certifying items by payor banks.
Whom does it apply to?
Payor banks
What does it govern?
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
Colorado