400.4-303. When item subject to notice, stop-payment order--legal process or setoff--order in which items may be charged or certified. - Missouri Statutes

When item subject to notice, stop-payment order--legal process orsetoff--order in which items may be charged or certified.

400.4-303. (a) Any knowledge, notice, or stop-paymentorder received by, legal process served upon or setoff exercisedby a payor bank comes too late to terminate, suspend, or modifythe bank's right or duty to pay an item or to charge itscustomer's account for the item if the knowledge, notice,stop-payment order, or legal process is received or served and areasonable time for the bank to act thereon expires or the setoffis exercised after the earliest of the following:

(1) the bank accepts or certifies the item;

(2) the bank pays the item in cash;

(3) the bank settles for the item without having a right torevoke the settlement under statute, clearing-house rule, oragreement;

(4) the bank becomes accountable for the amount of the itemunder section 400.4-302 dealing with the payor bank'sresponsibility for late return of items; or

(5) with respect to checks, a cutoff hour no earlier thanone hour after the opening of the next banking day after thebanking day on which the bank received the check and no laterthan the close of that next banking day or, if no cutoff hour isfixed, the close of the next banking day after the banking day onwhich the bank received the check.

(b) Subject to subsection (a), items may be accepted, paid,certified or charged to the indicated account of its customer inany order.

(L. 1963 p. 503 § 4-303, A.L. 1992 S.B. 448)