(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 the bank does not have a reasonable time to act thereon before, or the setoff is exercised after the happening of any of the following:
(a) The bank has accepted or certified the item; (b) The bank has paid the item in cash;
(c) The bank has settled for the item without having a right to revoke the settlement under any of the following: statute, clearinghouse rule, agreement, or reservation thereof;
(d) The bank has 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;
(e) The bank has become accountable for the amount of the item under subdivision (1)
(d) of Section 4213 and Section 4302 dealing with the payor bank’s responsibility for late return of items; or

(f) The item has been deposited or received for deposit for credit in an account of a customer with the payor bank.
(2) Subject to the provisions of subdivision (1) items may be accepted, paid, certified or charged to the indicated account of its customer in any order convenient to the bank and before or after its regular banking hours. A bank is under no obligation to determine the time of day an item is received and without liability may withhold the amount thereof pending a determination of the effect, consequence or priority of any knowledge, notice, stop order or legal process concerning the same, or interplead such amount and the claimants thereto.

COMMENT: Section 4109, paragraphs (b) through (d) of subdivision (1) of Section 4213 and paragraph (d) of subdivision (1) of Section 4303 conform substantively to their respective UCC counterparts. See 1972 Official Text of the Uniform Commercial Code and Official Comment thereto. The California variations were rejected by the Permanent Editorial Board on the grounds that they were
unnecessary to accomplish their stated objectives and were Aseriously defective@

COL120106
13 Guam Code Ann. UNIFORM COMMERCIAL CODE
DIV. 4 BANK DEPOSITS AND COLLECTIONS

themselves. For further discussion, see Report of the Permanent Editorial Board for the Uniform Commercial Code quoted in West Ann. Cal. Comm. Code 4213, California Code Comment (Supp. 1975).

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CHAPTER 4
RELATIONSHIPS BETWEEN PAYOR BANK AND ITS CUSTOMER