47-4405. 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 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 ten 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.
Section: Previous 47-4301 47-4302 47-4303 47-4401 47-4402 47-4403 47-4404 47-4405 47-4406 47-4407 47-4501 47-4502 47-4503 47-4504 47-4a101 NextLast modified: October 13, 2016