(1) Any knowledge, notice or stop payment order received by, legal process served 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 its customer’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 to act thereon expires or the setoff is exercised after the earliest of the following:
(a) The bank accepts or certifies the item;
(b) The bank pays the item in cash;
(c) The bank settles for the item without having a right to revoke the settlement under statute, clearing house rule or agreement;
(d) The bank becomes accountable for the amount of the item under ORS 74.3020 dealing with the payor bank’s responsibility for late return of items; or
(e) With respect to checks, a cut-off hour no earlier than one hour after the opening of the next banking day after the banking day on which the bank received the check and no later than the close of that next banking day or, if no cut-off hour is fixed, the close of the next banking day after the banking day on which the bank received the check.
(2) Subject to subsection (1) of this section items may be accepted, paid, certified or charged to the indicated account of its customer in any order. [1961 c.726 §74.3030; 1993 c.545 §103]
Section: Previous 74.2120 74.2130 74.2140 74.2150 74.2160 74.3010 74.3020 74.3030 74.4010 74.4020 74.4030 74.4040 74.4050 74.4060 74.4070 NextLast modified: August 7, 2008