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Can you summarize LARS 10.4-303?
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 provision, found in the Louisiana Revised Statutes under Commercial Laws, specifically in the section on BANK DEPOSITS AND COLLECTIONS, pertains to payor banks. It states that any knowledge, notice, stop-payment order, or legal process received by the bank, or setoff exercised by the bank, does not 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 under specific provisions, 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 subsections. No specific exemptions or penalties are mentioned in this provision.
Whom does it apply to?
Payor banks
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
Louisiana