New York Court of Appeals
First Commercial Bank v. Gotham Originals, Inc.
February 12, 198564 N.Y.2d 287
Summary
The New York Court of Appeals affirmed the Appellate Division's decision that UCC §4‑303 controls the timing of a restraining order against a payor bank, rendering the order untimely because the bank had already accepted the drafts. Accordingly, the bank must honor the drafts despite the plaintiff's claim of fraud. The Court also held that no procedural bars existed to the special proceeding under CPLR 6221.