N.Y. UCC Law § 4-303

Section 4--303. When Items Subject to Notice, Stop-Order, Legal Process\n or Setoff; Order in Which Items May Be Charged or\n Certified.\n (1) Any knowledge, notice or stop-order received by, legal process\nserved upon or setoff exercised by a payor bank, whether or not\neffective under other rules of law to terminate, suspend or modify the\nbank's right or duty to pay an item or to charge its customer's account\nfor the item, comes too late to so terminate, suspend or modify such\nright or duty if the knowledge, notice, stop-order or legal process is\nreceived or served and a reasonable time for the bank to act thereon\nexpires or the setoff is exercised after the bank has done any of the\nfollowing:\n (a) accepted or certified the item;\n (b) paid the item in cash;\n (c) settled for the item without reserving a right to revoke the\n settlement and without having such right under statute,\n clearing house rule or agreement;\n (d) completed the process of posting the item to the indicated\n account of the drawer, maker or other person to be charged\n therewith or otherwise has evidenced by examination of such\n indicated account and by action its decision to pay the item;\n or\n (e) become accountable for the amount of the item under\n subsection (1) (d) of Section 4--213 and Section 4--302\n dealing with the payor bank's responsibility for late return\n of items.\n (2) Subject to the provisions of subsection (1) items may be accepted,\npaid, certified or charged to the indicated account of its customer in\nany order convenient to the bank.\n