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Can you summarize NJST 12A:4-303?
When items are 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 New Jersey General and Permanent Statutes under the Commercial Transactions section, governs the treatment of items subject to notice, stop-payment order, legal process, or setoff, as well as the order in which these items may be charged or certified. It applies to payor banks and their customers. According to the provision, any knowledge, notice, or stop-payment order received by the bank, legal process served upon 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 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, or reaching a cutoff hour for checks. The provision also states that items may be accepted, paid, certified, or charged to the customer’s account in any order, subject to certain exceptions. No specific 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
New Jersey