Florida Statute 674.405 - Full Text and Legal Analysis

674.405 Death or incompetence of customer.—

(1) 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.

(2) Even with knowledge, a bank may for 10 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.

History.—s. 1, ch. 65-254; s. 42, ch. 92-82.

Note.—s. 4-405, U.C.C.; supersedes ss. 659.39, 659.40.

Cases Citing F.S. 674.405

Fla. Stat. § 674.405 (2026) Copy Cite Official Site Syfertize CourtListener Amendments
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·Blair v. Davis, 281 So. 2d 247 (Fla. 4th DCA 1973).
Cited 5 times | Published | Florida 4th District Court of Appeal
...In other words, the payee's entitlement to negotiate the check was voided by the death of the drawer, leaving the payee with only a claim against the drawer's estate. The drawee bank is without authority to accept and pay a check under the circumstances with the limitations and exceptions found in Section 674.405, F.S....
...1971, F.S.A., this being a bank protection statute. The foregoing pronouncements are thought to be basic and for a general discussion as to them see generally 4A Fla.Jur., Bills, Notes and Other Commercial Paper, § 359; 4 Fla.Jur., Banks and Trust Companies, § 244; and Section 674.405, F.S....
...The cause did not accrue when the defendants deposited the check it did not accrue when the drawer signed and delivered the check to the payee. None of these acts affected the plaintiff's assets. Further, regardless of these events, the *249 drawee bank had the power and duty (with the exceptions mentioned in F.S. 674.405, F.S.A., supra) to refuse payment upon the death of the drawer....
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Cited as authority(citing case) (2025)
phrase: "rule_authority"
Cited as authority(citing case) (2011)
phrase: "rule_authority"
Cited as authority(citing case) (2005)
phrase: "rule_authority"
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Black v. Hart, 301 So. 2d 787 (Fla. 3d DCA 1974).
Cited 1 times | Published | Florida 3rd District Court of Appeal | 15 U.C.C. Rep. Serv. (West) 467
...For payment of his debt, he must look to the lawful administrator just the same as any other unpaid creditor of the estate." 111 So. at 550-551. The cited case appears to be controlling but the trial court did not follow the decision because he felt that § 674.405, Fla. Stat. (effective Jan. 1, 1967) changed the applicable law. Section 674.405 is a part of the Uniform Commercial Code and is as follows: "674.405 Death or incompetence of customer....
...Stat., which is a part of the Florida Probate Law. The purpose of section 732.53, Fla. Stat., as determined by the Supreme Court in Johnston v. Thomas, supra, is to require that all the assets of an estate be turned over to the personal representative. Section 674.405, Fla....
...Stat., as a part of the Uniform Commercial Code, does not have the effect of changing this important relationship between the personal representative and persons having claims against the estate. This view is supported by the Official Comment to UCC 4-405 (§ 674.405, F.S.A.): * * * * * * "This section does not prevent an executor or administrator from recovering the payment from the holder of the check....
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Repub. Nat'l Bank of Miami v. Johnson ex rel. Guardianship Prog. of Dade Cnty., Inc., 622 So. 2d 1015 (Fla. 1st DCA 1993).
Published | Florida 1st District Court of Appeal | 20 U.C.C. Rep. Serv. 2d (West) 1300, 1993 Fla. App. LEXIS 6442, 1993 WL 205505
and has reasonable opportunity to act on it. § 674.405(1), Fla.Stat. (Supp.1992) (emphasis added). The

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Cases Citing F.S. 674.405

·Blair v. Davis, 281 So. 2d 247 (Fla. 4th DCA 1973).

Black v. Hart, 301 So. 2d 787 (Fla. 3d DCA 1974).

Repub. Nat'l Bank of Miami v. Johnson ex rel. Guardianship Prog. of Dade Cnty., Inc., 622 So. 2d 1015 (Fla. 1st DCA 1993).