Ask Reggi Your Question Now
Can you summarize UTCO 70A-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 Utah Code under the Uniform Commercial Code - Bank Deposits and Collections, specifically addresses the collection of items by payor banks. It states that any knowledge, notice, stop-payment order, or legal process received by the bank does not 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 document also mentions that items may be accepted, paid, certified, or charged to the customer’s account in any order. No exemptions or penalties are mentioned 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
Utah