Ask Reggi Your Question Now
Can you summarize IC 26-1-4-303?
Bank Deposits and Collections > When items subject to notice, stop-payment order, legal process, or setoff; order in which items may be charged or certified
Short Summary
This section of the Indiana Code, specifically under the Commercial Law and Uniform Commercial Code, pertains to the rights and duties of payor banks regarding items subject to notice, stop-payment order, legal process, or setoff. It states that any knowledge, notice, or stop-payment order received by the payor bank, or legal process served upon them, or setoff exercised by them, does not 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 section 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 section.
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
Indiana