2006 New York Code - Death Or Incompetence Of Customer.

 
  Section 4--405. Death or Incompetence of Customer.
    (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 such  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 ten days after the date of
  death pay or certify checks drawn  on  or  prior  to  that  date  unless
  ordered to stop payment by a person claiming an interest in the account.