§490:4-303  When items subject to notice,
stop-payment order, legal process, or setoff; order in which items may be
charged or certified.  (a)  Any knowledge, notice, or stop-payment order
received by, legal process served upon, or setoff exercised by a payor bank
comes too late to terminate, suspend, or modify the bank's right or duty to pay
an item or to charge its customer's account for the item if the knowledge,
notice, stop-payment order, or legal process is received or served and a
reasonable time for the bank to act thereon expires or the setoff is exercised
after the earliest of the following:



(1)  The bank accepts or certifies the item;



(2)  The bank pays the item in cash;



(3)  The bank settles for the item without having a
right to revoke the settlement under statute, clearing-house rule, or
agreement;



(4)  The bank becomes accountable for the amount of
the item under section 490:4-302 dealing with the payor bank's responsibility
for late return of items; or



(5)  With respect to checks, a cutoff hour no earlier
than one hour after the opening of the next banking day after the banking day
on which the bank received the check and no later than the close of that next
banking day or, if no cutoff hour is fixed, the close of the next banking day
after the banking day on which the bank received the check.



(b)  Subject to subsection (a), items may be
accepted, paid, certified, or charged to the indicated account of its customer
in any order. [L 1965, c 208, §4-303; HRS §490:4-303; am L 1991, c 118, pt of §4]