§ 25-4-405. Death or incompetence of customer. - North Carolina Statutes

§25‑4‑405.  Death or incompetence of customer.

(a)        A payor orcollecting bank's authority to accept, pay, or collect an item or to accountfor proceeds of its collection, if otherwise effective, is not renderedineffective by incompetence of a customer of either bank existing at the timethe item is issued or its collection is undertaken if the bank does not know ofan adjudication of incompetence. Neither death nor incompetence of a customerrevokes the authority to accept, pay, collect, or account until the bank knowsof the fact of death or of an adjudication of incompetence and has reasonableopportunity to act on it.

(b)        Even withknowledge, a bank may for ten days after the date of death pay or certifychecks drawn on or before that date unless ordered to stop payment by a personclaiming an interest in the account.

(c)        A transaction,although subject to this Article, is also subject to G.S. 41‑2.1, 53‑146.1,54‑109.58, and 54B‑129, and in case of conflict between theprovisions of this section and either of those sections, the provisions ofthose sections control. (1965, c. 700, s. 1; 1967, c. 24, s. 10; c. 562, s. 1;1995, c. 232, s. 2; 1998‑69, s. 10.)