8.4-405 - Death or incompetence of customer. - Virginia Statutes

§ 8.4-405. Death or incompetence of customer.

(a) A payor or collecting bank's authority to accept, pay or collect an itemor to account for proceeds of its collection if otherwise effective is notrendered ineffective by the incapacity of a customer of either bank existingat the time the item is issued or its collection is undertaken if the bankdoes not know of an adjudication of incapacity. Neither death nor incapacityof a customer revokes the authority to accept, pay, collect or account untilthe bank knows of the fact of death or of an adjudication of incapacity andhas reasonable opportunity to act on it.

(b) Even with knowledge a bank may for ten days after the date of death payor certify checks drawn on or before that date unless ordered to stop paymentby a person claiming an interest in the account.

(Code 1950, § 6-540; 1964, c. 219; 1992, c. 693; 1997, c. 801.)