US Lawyer Database

26-1-4.1-302. Obligations of Receiving Bank in Execution of Payment Order

Sec. 302. (a) Except as provided in subsections (b) through (d), if the receiving bank accepts a payment order pursuant to IC 26-1-4.1-209(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 […]

26-1-4.1-303. Erroneous Execution of Payment Order

Sec. 303. (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 […]

26-1-4.1-304. Duty of Sender to Report Erroneously Executed Payment Order

Sec. 304. If the sender of a payment order that is erroneously executed as stated in IC 26-1-4.1-303 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 […]

26-1-4.1-401. “Payment Date”

Sec. 401. “Payment date” of a payment order means the day on which the amount of the order is payable to the beneficiary by the beneficiary’s bank. The payment date may be determined by instruction of the sender but cannot be earlier than the day the order is received by the beneficiary’s bank and, unless […]

26-1-4.1-402. Obligation of Sender to Pay Receiving Bank

Sec. 402. (a) This section is subject to IC 26-1-4.1-205 and IC 26-1-4.1-207. (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 […]

26-1-4.1-403. Payment by Sender to Receiving Bank

Sec. 403. (a) Payment of the sender’s obligation under IC 26-1-4.1-402 to pay the receiving bank occurs as follows: (1) If the sender is a bank, payment occurs when the receiving bank receives final settlement of the obligation through a Federal Reserve Bank or through a funds-transfer system. (2) If the sender is a bank […]

26-1-4.1-405. Payment by Beneficiary’s Bank to Beneficiary

Sec. 405. (a) If the beneficiary’s bank credits an account of the beneficiary of a payment order, payment of the bank’s obligation under IC 26-1-4.1-404(a) occurs when and to the extent (i) the beneficiary is notified of the right to withdraw the credit, (ii) the bank lawfully applies the credit to a debt of the […]

26-1-4.1-406. Payment by Originator to Beneficiary; Discharge of Underlying Obligation

Sec. 406. (a) Subject to IC 26-1-4.1-211(e), IC 26-1-4.1-405(d), and IC 26-1-4.1-405(e), the originator of a funds transfer pays the beneficiary of the originator’s payment order (i) at the time a payment order for the benefit of the beneficiary is accepted by the beneficiary’s bank in the funds transfer and (ii) in an amount equal […]