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Can you summarize NHRS 382-A:4A-502?
UNIFORM COMMERCIAL CODE > Creditor Process Served on Receiving Bank; Setoff by Beneficiary's Bank.
Short Summary
This section of the New Hampshire Revised Statutes, specifically the Uniform Commercial Code (Chapter 382-A), governs the process of creditor process served on a receiving bank and the setoff by a beneficiary’s bank. The section defines ‘creditor process’ as various legal processes issued by or on behalf of a creditor or claimant with respect to an account. If creditor process is served on the receiving bank regarding an authorized account, the balance in the account is deemed to be reduced by the amount of the payment order, unless the bank had a reasonable opportunity to act on the process before accepting the payment order. If a beneficiary’s bank receives a payment order for the beneficiary’s account, it may credit the account and set off the amount against an obligation owed by the beneficiary or apply it to satisfy creditor process served on the bank. The bank may also credit the account and allow withdrawal, unless creditor process is served in a manner that affords the bank a reasonable opportunity to prevent withdrawal. If creditor process has been served and the bank had a reasonable opportunity to act on it, the bank may not reject the payment order except for reasons unrelated to the service of process. Creditor process with respect to a payment by the originator to the beneficiary can only be served on the beneficiary’s bank. Other banks served with the creditor process are not obliged to act on it.
Whom does it apply to?
Receiving banks, beneficiary's banks, creditors, and claimants
What does it govern?
Creditor process served on receiving bank; Setoff by beneficiary's bank
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
New Hampshire