Ask Reggi Your Question Now
Can you summarize KYRS 355.4-303?
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 Kentucky Revised Statutes, specifically under the Uniform Commercial Code for Bank Deposits and Collections, governs the order in which items may be charged or certified by payor banks when subject to notice, stop-payment order, 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 right or duty to pay an item or charge the customer’s account if the bank has already accepted or certified the item, paid it in cash, settled for the item without the right to revoke the settlement, become accountable for the amount of the item, or if a cutoff hour has passed. The section also mentions that items may be accepted, paid, certified, or charged to the customer’s account in any order, subject to certain conditions. There are no specific exemptions or penalties mentioned in this section.
Whom does it apply to?
Payor banks and their customers
What does it govern?
Order in which items may be charged or certified when subject to notice, stop-payment order, legal process, or setoff
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Kentucky