Texas Business & Commerce Code - Section 4.405. Death Or Incompetence Of Customer
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Texas Lawyer > Business & Commerce Code > Texas Business & Commerce Code - Section 4.405. Death Or Incompetence Of Customer
§ 4.405. DEATH OR INCOMPETENCE OF CUSTOMER. (a) A payor
or collecting bank's authority to accept, pay, or collect an item or
to account for proceeds of its collection, if otherwise effective,
is not rendered ineffective by the incompetence of a customer of
either bank existing at the time the item is issued or its
collection is undertaken if the bank does not know of an
adjudication of incompetence. Neither death nor incompetence of a
customer revokes the authority to accept, pay, collect, or account
until the bank knows of the fact of death or of an adjudication of
incompetence and has reasonable opportunity to act on it.
(b) Even with knowledge, a bank may for 10 days after the
date of death pay or certify checks drawn on or before that date
unless ordered to stop payment by a person claiming an interest in
the account.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1, eff. Sept. 1, 1967.
Amended by Acts 1995, 74th Leg., ch. 921, § 4, eff. Jan. 1, 1996.
Section: 4.301 4.302 4.303 4.401 4.402 4.403 4.404 4.405 4.406 4.407 4.501 4.502 4.503 4.504 5.101
Last modified: August 10, 2007
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