7-4A-211
Section 7-4A-211 Cancellation and amendment of payment order. (a) A communication of the sender
of a payment order cancelling or amending the order may be transmitted to the receiving bank
orally, electronically, or in writing. If a security procedure is in effect between the sender
and the receiving bank, the communication is not effective to cancel or amend the order unless
the communication is verified pursuant to the security procedure or the bank agrees to the
cancellation or amendment. (b) Subject to subsection (a), a communication by the sender cancelling
or amending a payment order is effective to cancel or amend the order if notice of the communication
is received at a time and in a manner affording the receiving bank a reasonable opportunity
to act on the communication before the bank accepts the payment order. (c) After a payment
order has been accepted, cancellation or amendment of the order is not effective unless the
receiving bank agrees or a funds-transfer system rule...
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7-4A-105
Section 7-4A-105 Other definitions. (a) In this article: (1) "Authorized account"
means a deposit account of a customer in a bank designated by the customer as a source of
payment of payment orders issued by the customer to the bank. If a customer does not so designate
an account, any account of the customer is an authorized account if payment of a payment order
from that account is not inconsistent with a restriction on the use of that account. (2) "Bank"
means a person engaged in the business of banking and includes a savings bank, savings and
loan association, credit union, and trust company. A branch or separate office of a bank is
a separate bank for purposes of this article. (3) "Customer" means a person, including
a bank, having an account with a bank, or from whom a bank has agreed to receive payment orders.
(4) "Funds-transfer business day" of a receiving bank means the part of a day during
which the receiving bank is open for the receipt, processing, and transmittal of...
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7-4A-209
Section 7-4A-209 Acceptance of payment order. (a) Subject to subsection (d), a receiving bank
other than the beneficiary's bank accepts a payment order when it executes the order. (b)
Subject to subsections (c) and (d), a beneficiary's bank accepts a payment order at the earliest
of the following times: (1) when the bank (i) pays the beneficiary as stated in Section 7-4A-405(a)
or 7-4A-405(b), or (ii) notifies the beneficiary of receipt of the order or that the account
of the beneficiary has been credited with respect to the order unless the notice indicates
that the bank is rejecting the order or that funds with respect to the order may not be withdrawn
or used until receipt of payment from the sender of the order; (2) when the bank receives
payment of the entire amount of the sender's order pursuant to Section 7-4A-403(a)(1) or 7-4A-403(a)(2);
or (3) the opening of the next funds-transfer business day of the bank following the payment
date of the order if, at that time, the amount of...
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7-4A-103
Section 7-4A-103 Payment order - Definitions. (a) In this article: (1) "Payment order"
means an instruction of a sender to a receiving bank, transmitted orally, electronically,
or in writing, to pay, or to cause another bank to pay, a fixed or determinable amount of
money to a beneficiary if: (i) the instruction does not state a condition to payment to the
beneficiary other than time of payment, (ii) the receiving bank is to be reimbursed by debiting
an account of, or otherwise receiving payment from, the sender, and (iii) the instruction
is transmitted by the sender directly to the receiving bank or to an agent, funds-transfer
system, or communication system for transmittal to the receiving bank. (2) "Beneficiary"
means the person to be paid by the beneficiary's bank. (3) "Beneficiary's bank"
means the bank identified in a payment order in which an account of the beneficiary is to
be credited pursuant to the order or which otherwise is to make payment to the beneficiary
if the order...
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7-4A-206
Section 7-4A-206 Transmission of payment order through funds-transfer or other communication
system. (a) If a payment order addressed to a receiving bank is transmitted to a funds-transfer
system or other third-party communication system for transmittal to the bank, the system is
deemed to be an agent of the sender for the purpose of transmitting the payment order to the
bank. If there is a discrepancy between the terms of the payment order transmitted to the
system and the terms of the payment order transmitted by the system to the bank, the terms
of the payment order of the sender are those transmitted by the system. This section does
not apply to a funds-transfer system of the Federal Reserve Banks. (b) This section applies
to cancellations and amendments of payment orders to the same extent it applies to payment
orders. (Acts 1992, 2nd Ex. Sess., No. 92-701, p. 145, §1.)...
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7-4A-402
Section 7-4A-402 Obligation of sender to pay receiving bank. (a) This section is subject to
Sections 7-4A-205 and 7-4A-207. (b) With respect to a payment order issued to the beneficiary's
bank, acceptance of the order by the bank obliges the sender to pay the bank the amount of
the order, but payment is not due until the payment date of the order. (c) This subsection
is subject to subsection (e) and to Section 7-4A-303. With respect to a payment order issued
to a receiving bank other than the beneficiary's bank, acceptance of the order by the receiving
bank obliges the sender to pay the bank the amount of the sender's order. Payment by the sender
is not due until the execution date of the sender's order. The obligation of that sender to
pay its payment order is excused if the funds transfer is not completed by acceptance by the
beneficiary's bank of a payment order instructing payment to the beneficiary of that sender's
payment order. (d) If the sender of payment order pays the order...
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7-4A-202
Section 7-4A-202 Authorized and verified payment orders. (a) A payment order received by the
receiving bank is the authorized order of the person identified as sender if that person authorized
the order or is otherwise bound by it under the law of agency. (b) If a bank and its customer
have agreed that the authenticity of payment orders issued to the bank in the name of the
customer as sender will be verified pursuant to a security procedure, a payment order received
by the receiving bank is effective as the order of the customer, whether or not authorized,
if (i) the security procedure is a commercially reasonable method of providing security against
unauthorized payment orders, and (ii) the bank proves that it accepted the payment order in
good faith and in compliance with the security procedure and any written agreement or instruction
of the customer restricting acceptance of payment orders issued in the name of the customer.
The bank is not required to follow an instruction that...
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7-4A-210
Section 7-4A-210 Rejection of payment order. (a) A payment order is rejected by the receiving
bank by a notice of rejection transmitted to the sender orally, electronically, or in writing.
A notice of rejection need not use any particular words and is sufficient if it indicates
that the receiving bank is rejecting the order or will not execute or pay the order. Rejection
is effective when the notice is given if transmission is by a means that is reasonable in
the circumstances. If notice of rejection is given by a means that is not reasonable, rejection
is effective when the notice is received. If an agreement of the sender and receiving bank
establishes the means to be used to reject a payment order, (i) any means complying with the
agreement is reasonable, and (ii) any means not complying is not reasonable unless no significant
delay in receipt of the notice resulted from the use of the noncomplying means. (b) This subsection
applies if a receiving bank other than the beneficiary's...
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7-4A-212
Section 7-4A-212 Liability and duty of receiving bank regarding unaccepted payment order. If
a receiving bank fails to accept a payment order that it is obliged by express agreement to
accept, the bank is liable for breach of the agreement to the extent provided in the agreement
or in this article, but does not otherwise have any duty to accept a payment order, or before
acceptance, to take any action, or refrain from taking action, with respect to the order except
as provided in this article or by express agreement. Liability based on acceptance arises
only when acceptance occurs as stated in Section 7-4A-209, and liability is limited to that
provided in this article. A receiving bank is not the agent of the sender or beneficiary of
the payment order it accepts, or of any other party to the funds transfer, and the bank owes
no duty to any party to the funds transfer except as provided in this article or by express
agreement. (Acts 1992, 2nd Ex. Sess., No. 92-701, p. 145, §1.)...
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7-4A-104
Section 7-4A-104 Funds transfer - Definitions. In this article: (a) "Funds transfer"
means the series of transactions, beginning with the originator's payment order, made for
the purpose of making payment to the beneficiary of the order. The term includes any payment
order issued by the originator's bank or an intermediary bank intended to carry out the originator's
payment order. A funds transfer is completed by acceptance by the beneficiary's bank of a
payment order for the benefit of the beneficiary of the originator's payment order. (b) "Intermediary
bank" means a receiving bank other than the originator's bank or the beneficiary's bank.
(c) "Originator" means the sender of the first payment order in a funds transfer.
(d) "Originator's bank" means (i) the receiving bank to which the payment order
of the originator is issued if the originator is not a bank, or (ii) the originator if the
originator is a bank. (Acts 1992, 2nd Ex. Sess., No. 92-701, p. 145, §1.)...
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