(1) 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.
(2) 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. [1961 c.726 §74.4050; 1993 c.545 §107]Section: Previous 74.2160 74.3010 74.3020 74.3030 74.4010 74.4020 74.4030 74.4040 74.4050 74.4060 74.4070 74.5010 74.5020 74.5030 74.5040 Next
Last modified: August 7, 2008