There is a newer version of the Kentucky Revised Statutes
2009 Kentucky Revised Statutes
Article 4 Bank Deposits and Collections
355.4.303 When items subject to notice, stop-payment order, legal process, or setoff -- Order in which items may be charged or certified.
Download pdfmodify the bank's right or duty to pay an item or to charge its customer's account for
the item if the knowledge, notice, stop-payment order, or legal process is received
or served and a reasonable time for the bank to act thereon expires or the setoff is
exercised after the earliest of the following:
(a) The bank accepts or certifies the item;
(b) The bank pays the item in cash;
(c) The bank settles for the item without having a right to revoke the settlement under statute, clearing-house rule, or agreement; (d) The bank becomes accountable for the amount of the item under KRS 355.4- 302 dealing with the payor bank's responsibility for late return of items; or (e) With respect to checks, a cutoff hour no earlier than one (1) hour after the opening of the next banking day after the banking day on which the bank
received the check and no later than the close of that next banking day or, if
no cutoff hour is fixed, the close of the next banking day after the banking day
on which the bank received the check. (2) Subject to subsection (1), items may be accepted, paid, certified, or charged to the indicated account of its customer in any order. Effective: January 1, 1997
History: Amended 1996 Ky. Acts ch. 130, sec. 101, effective January 1, 1997. -- Created 1958 Ky. Acts ch. 77, sec. 4-303, effective July 1, 1960.
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