47-4A502. Creditor process served on
receiving bank; setoff by beneficiary's bank


A. As used in this section, "creditor process" means levy, attachment, garnishment,
notice of lien, sequestration or similar process issued by or on behalf of a creditor or
other claimant with respect to an account.


B. This subsection applies to creditor process with respect to an authorized
account of the sender of a payment order if the creditor process is served on the
receiving bank. For the purpose of determining rights with respect to the creditor
process, if the receiving bank accepts the payment order the balance in the authorized
account is deemed to be reduced by the amount of the payment order to the extent the bank
did not otherwise receive payment of the order, unless the creditor process is served at
a time and in a manner affording the bank a reasonable opportunity to act on it before
the bank accepts the payment order.


C. If a beneficiary's bank has received a payment order for payment to the
beneficiary's account in the bank, the following rules apply:


1. The bank may credit the beneficiary's account. The amount credited may be set
off against an obligation owed by the beneficiary to the bank or may be applied to
satisfy creditor process served on the bank with respect to the account.


2. The bank may credit the beneficiary's account and allow withdrawal of the amount
credited unless creditor process with respect to the account is served at a time and in a
manner affording the bank a reasonable opportunity to act to prevent withdrawal.


3. If creditor process with respect to the beneficiary's account has been served
and the bank has had a reasonable opportunity to act on it, the bank may not reject the
payment order except for a reason unrelated to the service of process.


D. Creditor process with respect to a payment by the originator to the beneficiary
pursuant to a funds transfer may be served only on the beneficiary's bank with respect to
the debt owed by that bank to the beneficiary. Any other bank served with the creditor
process is not obliged to act with respect to the process.