2006 New York Code - Payor Banks

 
  Section 4--303. When  Items Subject to Notice, Stop-Order, Legal Process
                    or Setoff; Order in Which  Items  May  Be  Charged  or
                    Certified.
    (1)  Any  knowledge,  notice  or stop-order received by, legal process
  served upon or  setoff  exercised  by  a  payor  bank,  whether  or  not
  effective  under  other rules of law to terminate, suspend or modify the
  bank's right or duty to pay an item or to charge its customer's  account
  for  the  item,  comes  too late to so terminate, suspend or modify such
  right or duty if the knowledge, notice, stop-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 bank has done  any  of  the
  following:
         (a) accepted or certified the item;
         (b) paid the item in cash;
         (c) settled  for the item without reserving a right to revoke the
             settlement and  without  having  such  right  under  statute,
             clearing house rule or agreement;
         (d) completed  the  process  of posting the item to the indicated
             account of the drawer, maker or other person  to  be  charged
             therewith  or  otherwise has evidenced by examination of such
             indicated account and by action its decision to pay the item;
             or
         (e) become  accountable  for  the  amount  of  the   item   under
             subsection  (1)  (d)  of  Section  4--213  and Section 4--302
             dealing with the payor bank's responsibility for late  return
             of items.
    (2) Subject to the provisions of subsection (1) items may be accepted,
  paid,  certified  or charged to the indicated account of its customer in
  any order convenient to the bank.