Ask Reggi Your Question Now
Can you summarize IACO 554.4303?
UNIFORM COMMERCIAL CODE > 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 Iowa Code’s Uniform Commercial Code, governs the order in which items may be charged or certified by payor banks. It states that any knowledge, notice, stop-payment order, legal process, or setoff received by a payor bank comes too late to terminate, suspend, or modify the bank’s right or duty to pay an item or charge its 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. No specific exemptions or penalties are mentioned in this document.
Whom does it apply to?
Payor banks and their customers
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
Iowa