§ 25-4-303. When items subject to notice, stop-payment order, legal process, or setoff; order in which items may be charged or certified. - North Carolina Statutes

§25‑4‑303.  When items subject to notice, stop‑payment order,legal process, or setoff; order in which items may be charged or certified.

(a)        Any knowledge,notice, or stop‑payment order received by, legal process served upon, orsetoff exercised by a payor bank comes too late to terminate, suspend, ormodify the bank's right or duty to pay an item or to charge its customer'saccount for the item if the knowledge, notice, stop‑payment order, orlegal process is received or served and a reasonable time for the bank to actthereon expires or the setoff is exercised after the earliest of the following:

(1)        The bank accepts orcertifies the item;

(2)        The bank pays theitem in cash;

(3)        The bank settles forthe item without having a right to revoke the settlement under statute,clearing‑house rule, or agreement;

(4)        The bank becomesaccountable for the amount of the item under G.S. 25‑4‑302 dealingwith the payor bank's responsibility for late return of item; or

(5)        With respect tochecks, a cutoff hour no earlier than one hour after the opening of the nextbanking day after the banking day on which the bank received the check and nolater than the close of that next banking day or, if no cutoff hour is fixed,the close of the next banking day after the banking day on which the bankreceived the check.

(b)        Subject tosubsection (a) of this section, items may be accepted, paid, certified orcharged to the indicated account of its customer in any order. (1965,c. 700, s. 1; 1995, c. 232, s. 2.)