7-3-602
Section 7-3-602 Payment. (a) Subject to subsection (b), an instrument is paid to the extent
payment is made (i) by or on behalf of a party obliged to pay the instrument, and (ii) to
a person entitled to enforce the instrument. To the extent of the payment, the obligation
of the party obliged to pay the instrument is discharged even though payment is made with
knowledge of a claim to the instrument under Section 7-3-306 by another person. (b) The obligation
of a party to pay the instrument is not discharged under subsection (a) if: (1) A claim to
the instrument under Section 7-3-306 is enforceable against the party receiving payment and
(i) payment is made with knowledge by the payor that payment is prohibited by injunction or
similar process of a court of competent jurisdiction, or (ii) in the case of an instrument
other than a cashier's check, teller's check, or certified check, the party making payment
accepted, from the person having a claim to the instrument, indemnity against loss...
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7-4A-204
Section 7-4A-204 Refund of payment and duty of customer to report with respect to unauthorized
payment order. (a) If a receiving bank accepts a payment order issued in the name of its customer
as sender which is (i) not authorized and not effective as the order of the customer under
Section 7-4A-202, or (ii) not enforceable, in whole or in part, against the customer under
Section 7-4A-203, the bank shall refund any payment of the payment order received from the
customer to the extent the bank is not entitled to enforce payment and shall pay interest
on the refundable amount calculated from the date the bank received payment to the date of
the refund. However, the customer is not entitled to interest from the bank on the amount
to be refunded if the customer fails to exercise ordinary care to determine that the order
was not authorized by the customer and to notify the bank of the relevant facts within a reasonable
time not exceeding 90 days after the date the customer received...
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8-25-5
Section 8-25-5 Required provisions in advertisements. An advertisement for a rental-purchase
agreement that states the amount of a payment or the right to acquire ownership of any one
particular item under the agreement must clearly and conspicuously state: (1) That the transaction
advertised is a rental-purchase agreement and (2) The total amount and the number of payments
necessary to acquire ownership. (Acts 1986, No. 86-497, p. 945, §5.)...
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8-6-93
Section 8-6-93 Minor may not disaffirm security transaction unless prior written notice of
minority given. A minor who has transferred a security, received or empowered others to receive
dividends, interest, principal, or other payments or distributions, voted or given consent
in person or by proxy or made an election or exercised rights relating to the security has
no right thereafter, as against a bank, broker, issuer, third-party or transfer agent, to
disaffirm or avoid the transaction unless, prior to acting in the transaction, the bank, broker,
issuer, third-party or transfer agent against whom the transaction is sought to be disaffirmed
or avoided had received written notice in the office acting in the transaction that the specific
security is held by a minor. (Acts 1961, No. 1010, p. 1585, §3.)...
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5-18A-2
Section 5-18A-2 Definitions. As used in this chapter, the following terms shall have the following
meanings: (1) CHECK. A debit authorization or a check signed by the maker and made payable
to a person licensed under this chapter. (2) CONTINUOUS TRANSACTION. To extend a deferred
presentment transaction with the same account without redemption in full with cash or guaranteed
funds. (3) DEFERRED PRESENTMENT SERVICES. A transaction pursuant to a written agreement involving
the following combination of activities in exchange for a fee: a. Accepting a check or authorization
to debit a checking account and, in connection with that acceptance, advancing funds to the
checking account holder. b. Holding the check or authorization to debit checking account for
a period of time prior to payment or deposit. (4) DEPARTMENT. The State Banking Department.
(5) LICENSEE. A person licensed to provide deferred presentment services pursuant to this
chapter. (6) PERSON. An individual, group of individuals,...
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5-5A-37
Section 5-5A-37 Rights of minors. A minor may make, in her or his own name, a deposit in any
bank, and such deposit may be general or special, and shall be paid only to such minor, or
upon his or her order, and not to the parents or guardians of such minor, and such payment
shall be valid as against the minor child, his or her parents or guardian. (Acts 1980, No.
80-658, §5-5-37.)...
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7-4-210
Section 7-4-210 Security interest of collecting bank in items, accompanying documents, and
proceeds. (a) A collecting bank has a security interest in an item and any accompanying documents
or the proceeds of either: (1) In case of an item deposited in an account, to the extent to
which credit given for the item has been withdrawn or applied; (2) In case of an item for
which it has given credit available for withdrawal as of right, to the extent of the credit
given, whether or not the credit is drawn upon or there is a right of charge-back; or (3)
If it makes an advance on or against the item. (b) If credit given for several items received
at one time or pursuant to a single agreement is withdrawn or applied in part, the security
interest remains upon all the items, any accompanying documents or the proceeds of either.
For the purpose of this section, credits first given are first withdrawn. (c) Receipt by a
collecting bank of a final settlement for an item is a realization on its...
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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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7-3-416
Section 7-3-416 Transfer warranties. (a) A person who transfers an instrument for consideration
warrants to the transferee and, if the transfer is by indorsement, to any subsequent transferee
that: (1) The warrantor is a person entitled to enforce the instrument; (2) All signatures
on the instrument are authentic and authorized; (3) The instrument has not been altered; (4)
The instrument is not subject to a defense or claim in recoupment of any party which can be
asserted against the warrantor; and (5) The warrantor has no knowledge of any insolvency proceeding
commenced with respect to the maker or acceptor or, in the case of an unaccepted draft, the
drawer. (b) A person to whom the warranties under subsection (a) are made and who took the
instrument in good faith may recover from the warrantor as damages for breach of warranty
an amount equal to the loss suffered as a result of the breach, but not more than the amount
of the instrument plus expenses and loss of interest incurred as a...
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8-6-92
Section 8-6-92 Liability of bank, transfer agent, etc., for treating minor as having capacity
to exercise security rights; presumption that holder not minor. (a) A bank, broker, issuer,
third-party or transfer agent incurs no liability by reason of his treating a minor as having
capacity to transfer a security, to receive or to empower others to receive dividends, interest,
principal, or other payments or distributions, to vote or give consent in person or by proxy,
or to make elections or exercise rights relating to the security unless prior to acting in
the transaction the bank, broker, issuer, third-party or transfer agent had received written
notice in the office acting in the transaction that the specific security is held by a minor.
(b) Except as otherwise provided in this article, such a bank, broker, issuer, third-party
or transfer agent may assume without inquiry that the holder of a security is not a minor.
(Acts 1961, No. 1010, p. 1585, §2.)...
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