70A-4-405 - Death or incompetence of customer.
70A-4-405. Death or incompetence of customer.
(1) A payor or collecting bank's authority to accept, pay or collect an item or to accountfor proceeds of its collection, if otherwise effective, is not rendered ineffective by incompetenceof a customer of either bank existing at the time the item is issued or its collection is undertakenif the bank does not know of an adjudication of incompetence. Neither death nor incompetenceof a customer revokes the authority to accept, pay, collect, or account until the bank knows of thefact 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 certifychecks drawn on or before that date unless ordered to stop payment by a person claiming aninterest in the account, and Subsection 70A-4-403(2) shall not be applicable to the stop paymentorder of such person.
Amended by Chapter 237, 1993 General Session