Wisconsin Statutes 404.303 – When items subject to notice, stop-payment order, legal process or setoff; order in which items may be charged or certified
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Terms Used In Wisconsin Statutes 404.303
- 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 Wisconsin Statutes 404.104
- 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. See Wisconsin Statutes 404.104
- Clearinghouse: means an association of banks or other payers regularly clearing items. See Wisconsin Statutes 404.104
- 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 Wisconsin Statutes 404.104
- Following: when used by way of reference to any statute section, means the section next following that in which the reference is made. See Wisconsin Statutes 990.01
- Item: means an instrument or a promise or order to pay money handled by a bank for collection or payment. See Wisconsin Statutes 404.104
- 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.
(1) Any knowledge, notice or stop-payment order received by, legal process served upon or setoff exercised by a payer 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:
(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 s. 404.302 dealing with the payer bank’s responsibility for late return of items.
(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 sub. (1), items may be accepted, paid, certified or charged to the indicated account of its customer in any order.