Section 7-4A-209 – Acceptance of Payment Order.
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 […]
Section 7-4A-210 – Rejection of Payment Order.
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 […]
Section 7-4A-211 – Cancellation and Amendment of Payment Order.
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 […]
Section 7-4A-212 – Liability and Duty of Receiving Bank Regarding Unaccepted Payment Order.
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 […]
Section 7-4A-201 – Security Procedure.
Section 7-4A-201 Security procedure. “Security procedure” means a procedure established by agreement of a customer and a receiving bank for the purpose of (i) verifying that a payment order or communication amending or cancelling a payment order is that of the customer, or (ii) detecting error in the transmission or the content of the payment […]
Section 7-4A-202 – Authorized and Verified Payment Orders.
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 […]
Section 7-4A-203 – Unenforceability of Certain Verified Payment Orders.
Section 7-4A-203 Unenforceability of certain verified payment orders. (a) If an accepted payment order is not, under Section 7-4A-202(a), an authorized order of a customer identified as sender, but is effective as an order of the customer pursuant to Section 7-4A-202(b), the following rules apply: (1) By express written agreement, the receiving bank may limit […]
Section 7-4A-204 – Refund of Payment and Duty of Customer to Report With Respect to Unauthorized Payment Order.
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 […]
Section 7-4A-205 – Erroneous Payment Orders.
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 […]
Section 7-4A-206 – Transmission of Payment Order Through Funds-Transfer or Other Communication System.
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 […]