§ 6A-4-405 - Death or incompetence of customer.
SECTION 6A-4-405
§ 6A-4-405 Death or incompetence ofcustomer. – (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 incompetence of a customer of either bank existing atthe time the item is issued or its collection is undertaken if the bank doesnot know of an adjudication of incompetence. Neither death nor incompetence ofa customer revokes the authority to accept, pay, collect, or account until thebank knows of the fact of death or of an adjudication of incompetence and hasreasonable opportunity to act on it.
(b) Even with knowledge, a bank may for ten (10) days afterthe date of death pay or certify checks drawn on or before that date unlessordered to stop payment by a person claiming an interest in the account.