554.4405 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 incompetenceof a customer of either bank existing at the time the item is issued or its collection isundertaken if the bank does not know of an adjudication of incompetence. Neither deathnor incompetence of a customer revokes the authority to accept, pay, collect or accountuntil the bank knows of the fact of death or of an adjudication of incompetence and hasreasonable opportunity to act on it. 2. Even with knowledge, a bank may for ten 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 aninterest in the account. [S13, §3060-a76; C24, 27, 31, 35, 39, §9536; C46, 50, 54, 58, 62, §541.76; C66, 71, 73, 75, 77, 79, 81, §554.4405] 94 Acts, ch 1167, §110, 122 Sat Dec 23 01:57:30 2023 Iowa Code 2024, Section 554.4405 (24, 0)
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