Section 4-A-502. Creditor Process Served on Receiving Bank; Set Off by Beneficiary's Bank

(1)  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.
    (2)  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.
    (3) If a beneficiary's bank has received a payment order  for  payment
  to the beneficiary's account in the bank, the following rules apply:
         (a) 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.
         (b) 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.
         (c) 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.
    (4) 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.