7-4A-303
Section 7-4A-303 Erroneous execution of payment order. (a) A receiving bank that (i) executes
the payment order of the sender by issuing a payment order in an amount greater than the amount
of the sender's order, or (ii) issues a payment order in execution of the sender's order and
then issues a duplicate order, is entitled to payment of the amount of the sender's order
under Section 7-4A-402(c) if that subsection is otherwise satisfied. The bank is entitled
to recover from the beneficiary of the erroneous order the excess payment received to the
extent allowed by the law governing mistake and restitution. (b) A receiving bank that executes
the payment order of the sender by issuing a payment order in an amount less than the amount
of the sender's order is entitled to payment of the amount of the sender's order under Section
7-4A-402(c) if (i) that subsection is otherwise satisfied and (ii) the bank corrects its mistake
by issuing an additional payment order for the benefit of the...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/7-4A-303.htm - 2K - Match Info - Similar pages

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...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/7-4A-402.htm - 2K - Match Info - Similar pages

7-4A-205
Section 7-4A-205 Erroneous payment orders. (a) If an accepted payment order was transmitted
pursuant to a security procedure for the detection of error and the payment order (i) erroneously
instructed payment to a beneficiary not intended by the sender, (ii) erroneously instructed
payment in an amount greater than the amount intended by the sender, or (iii) was an erroneously
transmitted duplicate of a payment order previously sent by the sender, the following rules
apply: (1) If the sender proves that the sender or a person acting on behalf of the sender
pursuant to Section 7-4A-206 complied with the security procedure and that the error would
have been detected if the receiving bank had also complied, the sender is not obliged to pay
the order to the extent stated in paragraphs (2) and (3). (2) If the funds transfer is completed
on the basis of an erroneous payment order described in clause (i) or (iii) of subsection
(a), the sender is not obliged to pay the order and the receiving...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/7-4A-205.htm - 2K - Match Info - Similar pages

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...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/7-4A-211.htm - 3K - Match Info - Similar pages

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...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/7-4A-210.htm - 2K - Match Info - Similar pages

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...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/7-4A-105.htm - 3K - Match Info - Similar pages

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...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/7-4A-209.htm - 3K - Match Info - Similar pages

7-4A-302
Section 7-4A-302 Obligations of receiving bank in execution of payment order. (a) Except as
provided in subsections (b) through (d), if the receiving bank accepts a payment order pursuant
to Section 7-4A-209(a), the bank has the following obligations in executing the order: (1)
The receiving bank is obliged to issue, on the execution date, a payment order complying with
the sender's order and to follow the sender's instructions concerning (i) any intermediary
bank or funds-transfer system to be used in carrying out the funds transfer, or (ii) the means
by which payment orders are to be transmitted in the funds transfer. If the originator's bank
issues a payment order to an intermediary bank, the originator's bank is obliged to instruct
the intermediary bank according to the instruction of the originator. An intermediary bank
in the funds transfer is similarly bound by an instruction given to it by the sender of the
payment order it accepts. (2) If the sender's instruction states that...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/7-4A-302.htm - 3K - Match Info - Similar pages

7-4A-301
Section 7-4A-301 Execution and execution date. (a) A payment order is "executed"
by the receiving bank when it issues a payment order intended to carry out the payment order
received by the bank. A payment order received by the beneficiary's bank can be accepted but
cannot be executed. (b) "Execution date" of a payment order means the day on which
the receiving bank may properly issue a payment order in execution of the sender's order.
The execution date may be determined by instruction of the sender but cannot be earlier than
the day the order is received and, unless otherwise determined, is the day the order is received.
If the sender's instruction states a payment date, the execution date is the payment date
or an earlier date on which execution is reasonably necessary to allow payment to the beneficiary
on the payment date. (Acts 1992, 2nd Ex. Sess., No. 92-701, p. 145, §1.)...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/7-4A-301.htm - 1K - Match Info - Similar pages

7-4A-304
Section 7-4A-304 Duty of sender to report erroneously executed payment order. If the sender
of a payment order that is erroneously executed as stated in Section 7-4A-303 receives notification
from the receiving bank that the order was executed or that the sender's account was debited
with respect to the order, the sender has a duty to exercise ordinary care to determine, on
the basis of information available to the sender, that the order was erroneously executed
and to notify the bank of the relevant facts within a reasonable time not exceeding 90 days
after the notification from the bank was received by the sender. If the sender fails to perform
that duty, the bank is not obliged to pay interest on any amount refundable to the sender
under Section 7-4A-402(d) for the period before the bank learns of the execution error. The
bank is not entitled to any recovery from the sender on account of a failure by the sender
to perform the duty stated in this section. (Acts 1992, 2nd Ex. Sess.,...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/7-4A-304.htm - 1K - Match Info - Similar pages