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Can you summarize SDCL 57A-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 charged or certified.
Short Summary
This legal document, found in the South Dakota Codified Laws under the Uniform Commercial Code, specifically in the section on Bank Deposits and Collections, 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 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 document also mentions that items may be accepted, paid, certified, or charged to the customer’s account in any order, subject to certain provisions. No exemptions or penalties are specified in this document.
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
South Dakota