28-4-405. DEATH OR INCOMPETENCE OF CUSTOMER. (1) A payor or collecting bank’s authority to accept, pay or collect an item or to account for proceeds of its collection, if otherwise effective, is not rendered ineffective by incompetence of a customer of either bank existing at the time the item is issued or its collection is undertaken if the bank does not know of an adjudication of incompetence. Neither death nor incompetence of a customer revokes the authority to accept, pay, collect or account until the bank knows of the fact of death or of an adjudication of incompetence and has reasonable opportunity to act on it.
(2) Even with knowledge, a bank may for ten (10) days after the date of death pay or certify checks drawn on or before that date unless ordered to stop payment by a person claiming an interest in the account.
History:
[28-4-405, added 1967, ch. 161, sec. 4-405, p. 351; am. 1993, ch. 288, sec. 39, p. 1070.]
Structure Idaho Code
Title 28 - COMMERCIAL TRANSACTIONS
Chapter 4 - UNIFORM COMMERCIAL CODE — BANK DEPOSITS AND COLLECTIONS
Part 4 - RELATIONSHIP BETWEEN PAYOR BANK AND ITS CUSTOMER
Section 28-4-401 - WHEN BANK MAY CHARGE CUSTOMER’S ACCOUNT.
Section 28-4-403 - CUSTOMER’S RIGHT TO STOP PAYMENT — BURDEN OF PROOF OF LOSS.
Section 28-4-404 - BANK NOT OBLIGATED TO PAY CHECK MORE THAN SIX MONTHS OLD.
Section 28-4-404A - BANK SHALL PROVIDE NOTICE OF USE OF PHOTOCOPY CHECK.
Section 28-4-404B - STATUTORY FORM FOR NOTICE OF PROCESSING PHOTOCOPIED CHECK.
Section 28-4-404C - WHEN NOTICE NOT REQUIRED.
Section 28-4-405 - DEATH OR INCOMPETENCE OF CUSTOMER.
Section 28-4-406 - CUSTOMER’S DUTY TO DISCOVER AND REPORT UNAUTHORIZED SIGNATURE OR ALTERATION.
Section 28-4-407 - PAYOR BANK’S RIGHT TO SUBROGATION ON IMPROPER PAYMENT.