Indiana Code
Chapter 4. Bank Deposits and Collections
26-1-4-405. Death or Incompetence of Customer

Sec. 405. (a) 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 the mental 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 mental 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.
(b) 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.
Formerly: Acts 1963, c.317, s.4-405. As amended by P.L.33-1989, SEC.25; P.L.222-1993, SEC.39.

Structure Indiana Code

Indiana Code

Title 26. Commercial Law

Article 1. Uniform Commercial Code

Chapter 4. Bank Deposits and Collections

26-1-4-101. Short Title

26-1-4-102. Applicability

26-1-4-102.5. Application of Bank Provisions to Supervised Financial Organizations

26-1-4-103. Variation by Agreement; Measure of Damages; Action Constituting Ordinary Care

26-1-4-104. Definitions and Index of Definitions

26-1-4-105. "Bank"; "Depositary Bank"; "Payor Bank"; "Intermediary Bank"; "Collecting Bank"; "Presenting Bank"

26-1-4-106. Payable Through or Payable at Bank; Collecting Bank

26-1-4-107. Separate Office of Bank

26-1-4-108. Time of Receipt of Items

26-1-4-109. Delays

26-1-4-110. Electronic Presentment

26-1-4-111. Statute of Limitations

26-1-4-201. Status of Collecting Banks as Agent and Provisional Status of Credits; Applicability of Chapter; Item Endorsed "Pay Any Bank"

26-1-4-202. Responsibility for Collection or Return; When Action Timely

26-1-4-203. Effect of Instructions

26-1-4-204. Methods of Sending and Presenting; Sending Directly to Payor Bank

26-1-4-205. Depositary Bank Holder of Unendorsed Items

26-1-4-206. Transfer Between Banks

26-1-4-207. Transfer Warranties

26-1-4-208. Presentment Warranties

26-1-4-209. Encoding and Retention Warranties

26-1-4-210. Security Interest of Collecting Bank in Items, Accompanying Documents, and Proceeds

26-1-4-211. When Bank Gives Value for Purposes of Holder in Due Course

26-1-4-212. Presentment by Notice of Item Not Payable By, Through, or at Bank; Liability of Drawer or Endorser

26-1-4-213. Medium and Time of Settlement by Bank

26-1-4-214. Right of Charge-Back or Refund; Liability of Collecting Bank; Return of Item

26-1-4-215. Final Payment of Item by Payor Bank; When Provisional Debits and Credits Become Final; When Certain Credits Become Available for Withdrawal

26-1-4-216. Insolvency and Preference

26-1-4-301. Deferred Posting; Recovery of Payment by Return of Items; Time of Dishonor; Return of Items by Payor Bank

26-1-4-302. Payor Bank's Responsibility for Late Return of Item

26-1-4-303. When Items Subject to Notice, Stop-Payment Order, Legal Process, or Setoff; Order in Which Items May Be Charged or Certified

26-1-4-401. When Bank May Charge Customer's Account

26-1-4-402. Bank's Liability to Customer for Wrongful Dishonor; Time of Determining Insufficiency of Account

26-1-4-403. Customer's Right to Stop Payment; Burden of Proof of Loss

26-1-4-404. Bank Not Obligated to Pay Check More Than Six Months Old

26-1-4-405. Death or Incompetence of Customer

26-1-4-406. Customer's Duty to Discover and Report Unauthorized Signature or Alteration

26-1-4-407. Payor Bank's Right to Subrogation on Improper Payment

26-1-4-501. Handling of Documentary Drafts; Duty to Send for Presentment and to Notify Customer of Dishonor

26-1-4-502. Presentment of "On Arrival" Drafts

26-1-4-503. Responsibility of Presenting Bank for Documents and Goods; Report of Reasons for Dishonor; Referee in Case Needed

26-1-4-504. Privilege of Presenting Bank to Deal With Goods; Security Interest for Expenses