30-4-405. 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 such 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 10 days after the date of death pay or certify checks drawn on or prior to that date unless ordered to stop payment by a person claiming an interest in the account.
History: En. Sec. 4-405, Ch. 264, L. 1963; R.C.M. 1947, 87A-4-405.
Structure Montana Code Annotated
Chapter 4. Uniform Commercial Code Bank Deposits and Collections
Part 4. Relationship Between Payor Bank and Its Customer
30-4-401. When bank may charge customer's account
30-4-403. Customer's right to stop payment -- burden of proof of loss
30-4-404. Bank not obligated to pay check more than 6 months old
30-4-405. Death or incompetence of customer
30-4-406. Customer's duty to discover and report unauthorized signature or alteration
30-4-407. Payor bank's right to subrogation on improper payment