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Can you summarize MTCO 30-4-303?
Collection of Items -- Payor Banks > When items subject to notice, stop order, legal process or setoff -- order in which items may be charged or certified
Short Summary
This legal document, part of the Montana Code under the Uniform Commercial Code Bank Deposits and Collections, pertains to the collection of items by payor banks. It specifies that any knowledge, notice, stop order, or legal process received by the payor 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 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 under specific provisions, or reaching a cutoff hour for checks. The document also states that items may be accepted, paid, certified, or charged to the customer’s account in any order, subject to the provisions mentioned. No specific exemptions or penalties are mentioned in this document.
Whom does it apply to?
Payor banks
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
Montana