(1) Any knowledge, notice or stop-order received by, legal process served upon or setoff exercised by a payor bank, whether or not effective under other rules of law 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, comes too late to so terminate, suspend or modify such right or duty if the knowledge, notice, stop-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 bank has done any of the following:

1. (a) accepted or certified the item;
2. (b) paid the item in cash;
3. (c) settled for the item without reserving a right to revoke the settlement and without having such right under statute, clearinghouse rule or agreement;
4. (d) completed the process of posting the item to the indicated account of the drawer, maker or other person to be charged therewith or otherwise has evidenced by examination of such indicated account and by action its decision to pay the item; or
5. (e) become accountable for the amount of the item under subsection (1)(d) ofSection 36-4-213 and Section 36-4-302 dealing with the payor bank's responsibility for late return of items.

(2) Subject to the provisions of subsection (1) items may be accepted, paid, certified or charged to the indicated account of its customer in any order convenient to the bank.

PART 4. RELATIONSHIP BETWEEN PAYOR BANK AND ITS CUSTOMER