Oregon Statutes 74.3030 – When items subject to notice, stop payment order, legal process or setoff; order in which items may be charged or certified; cutoff hour for checks
(1) Any knowledge, notice or stop payment order received by, legal process served upon, or setoff exercised by a payor bank comes too late 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 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:
Terms Used In Oregon Statutes 74.3030
- Account: means any deposit or credit account with a bank, including a demand, time, savings, passbook, share draft or like account, other than an account evidenced by a certificate of deposit. See Oregon Statutes 74.1040
- Banking day: has the meaning given that term in ORS § 708A. See Oregon Statutes 74.1040
- Clearing house: means an association of banks or other payors regularly clearing items. See Oregon Statutes 74.1040
- Customer: means a person having an account with a bank or for whom a bank has agreed to collect items, including a bank that maintains an account at another bank. See Oregon Statutes 74.1040
- Item: means an instrument or a promise or order to pay money handled by a bank for collection or payment. See Oregon Statutes 74.1040
- 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, clearing house rule or agreement;
(d) The bank becomes accountable for the amount of the item under ORS § 74.3020 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 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) of this section items may be accepted, paid, certified or charged to the indicated account of its customer in any order. [1961 c.726 § 74.3030; 1993 c.545 § 103]
RELATIONSHIP BETWEEN PAYOR BANK AND ITS CUSTOMER