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Can you summarize SCCL 36-4-303?
Collection of Items: Payor Banks > When items subject to notice, stop-payment order, legal process, or setoff; order in which items may be changed or certified.
Short Summary
This section of the South Carolina Code of Laws, specifically the Commercial Code - Bank Deposits and Collections, governs the collection of items by payor banks. It establishes that any knowledge, notice, stop-payment order, or legal process received by a 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 states that items may be accepted, paid, certified, or charged to the customer’s account in any order. There are no specific exemptions or penalties mentioned in this section.
Whom does it apply to?
Payor banks
What does it govern?
Collection of Items: Payor Banks
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
South Carolina