Ask Reggi Your Question Now
Can you summarize KSST 84-4-303?
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 provision, found in the Kansas Statutes under the Uniform Commercial Code’s section on Bank Deposits and Collections, governs the rights and duties of payor banks regarding items subject to notice, stop-payment orders, legal process, or setoff. It states that any knowledge, notice, stop-payment order, or legal process received by the payor bank comes too late to terminate, suspend, or modify the bank’s obligation 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 provision also allows for items to be accepted, paid, certified, or charged to the customer’s account in any order, subject to certain limitations. No specific exemptions or penalties are mentioned in this provision.
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
Kansas