Ask Reggi Your Question Now
Can you summarize NYCL UCC 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 Consolidated Laws of New York, specifically the Uniform Commercial Code, pertains to the collection of items by payor banks. It states 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 actions have already been taken by the bank. These actions include accepting or certifying the item, paying the item in cash, settling for the item without reserving a right to revoke the settlement, completing the process of posting the item to the indicated account, or becoming accountable for the amount of the item. The document also allows the bank to accept, pay, certify, or charge items to the customer’s account in any convenient order. No specific exemptions or penalties are mentioned in this document.
Whom does it apply to?
Payor banks
What does it govern?
Items subject to notice, stop-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 York