Ask Reggi Your Question Now
Can you summarize RIGL 6A-4-303?
Bank Deposits and Collections > When items subject to notice, stop-payment order, legal process, or setoff Order in which items may be charged or certified.
Short Summary
This section of the State of Rhode Island General Laws, specifically the Uniform Commercial Code under the Bank Deposits and Collections section, pertains to the collection of items by payor banks. It states that any knowledge, notice, stop-payment order, or legal process received by the payor bank comes too late to terminate, suspend, or modify the bank’s right or duty to pay an item or charge its customer’s account if the bank has already accepted or certified the item, paid it in cash, settled for the item without the right to revoke the settlement, become accountable for the amount of the item, or if a cutoff hour has passed. The section also mentions that items may be accepted, paid, certified, or charged to the customer’s account in any order, except as specified in subsection (a). There are no specific exemptions or penalties mentioned in this section.
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
Rhode Island