§ 6A-4-303 - When items subject to notice, stop-payment order, legal process, or setoff – Order in which items may be charged or certified. - Rhode Island Statutes

SECTION 6A-4-303

   § 6A-4-303  When items subject to notice,stop-payment order, legal process, or setoff – Order in which items may becharged or certified. – (a) Any knowledge, notice, or stop-payment order received by, legal processserved upon, or setoff exercised by a payor bank comes too late to terminate,suspend, or modify the 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 a reasonable time for the bank toact thereon expires or the setoff is exercised after the earliest of thefollowing:

   (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, or agreement;

   (4) The bank becomes accountable for the amount of the itemunder § 6A-4-302 dealing with the payor bank's responsibility for latereturn of items; or

   (5) With respect to checks, a cutoff hour no earlier than onehour after the opening of the next banking day after the banking day on whichthe bank received the check and no later than the close of that next bankingday or, if no cutoff hour is fixed, the close of the next banking day after thebanking day on which 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 in any order.