30-4-303. 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 earliest of the following:

Terms Used In Montana Code 30-4-303

  • account: means any deposit or credit account with a bank and includes a demand, time, savings, passbook, share draft, or like account, other than an account evidenced by a certificate of deposit;

    (b)"afternoon" means the period of a day between noon and midnight;

    (c)"banking day" means the part of a day on which a bank is open to the public for carrying on substantially all of its banking functions;

    (d)"clearinghouse" means an association of banks or other payors regularly clearing items;

    (e)"customer" means a person having an account with a bank or for whom a bank has agreed to collect items and includes a bank maintaining an account at another bank;

    (f)"documentary draft" means a draft to be presented for acceptance or payment if specified documents, certificated securities (30-8-112) or instructions for uncertificated securities (30-8-112), or other certificates, statements, or the like are to be received by the drawee or other payor before acceptance or payment of the draft;

    (g)"draft" means a draft as defined in 30-3-104 or an item, other than an instrument, that is an order;

    (h)"item" means an instrument or a promise or an order to pay money handled by a bank for collection or payment. See Montana Code 30-4-104

  • bank: means any person engaged in the business of banking, including a savings bank, savings and loan association, credit union, or trust company;

    (2)"depositary bank" means the first bank to take an item even though it is also the payor bank, unless the item is presented for immediate payment over the counter;

    (3)"payor bank" means a bank that is the drawee of a draft;

    (4)"intermediary bank" means a bank to which an item is transferred in course of collection except the depositary or payor bank;

    (5)"collecting bank" means a bank handling an item for collection except the payor bank;

    (6)"presenting bank" means a bank presenting an item except a payor bank. See Montana Code 30-4-105

  • Process: means a writ or summons issued in the course of judicial proceedings. See Montana Code 1-1-202
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • Statute: A law passed by a legislature.

(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, clearinghouse rule, or agreement;

(d)the bank becomes accountable for the amount of the item under 30-4-302 dealing with the payor bank’s responsibility for late return of items; or

(e)with respect to checks, a cutoff hour no earlier than 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 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 the provisions of subsection (1) items may be accepted, paid, certified, or charged to the indicated account of its customer in any order.

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