47-4405. Death or incompetence of
customer


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 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.


B. 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 an interest in the account.