§4-1201. Security procedure “Security procedure” means a procedure established by agreement of a customer and a receiving bank for the purpose of: [PL 1991, c. 812, §2 (NEW).] (1). Verifying that a payment order or communication amending or cancelling a payment order is that of the customer; or [PL 1991, c. 812, §2 […]
§4-1202. Authorized and verified payment orders (1). 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. [PL 1991, c. 812, §2 (NEW).] (2). If a bank and its […]
§4-1203. Unenforceability of certain verified payment orders (1). If an accepted payment order is not under section 4-1202, subsection (1) an authorized order of a customer identified as sender but is effective as an order of the customer pursuant to section 4-1202, subsection (2), the following rules apply. (a). By express written agreement, the […]
§4-1204. Refund of payment and duty of customer to report with respect to unauthorized payment order (1). If a receiving bank accepts a payment order issued in the name of its customer as sender that is not authorized and not effective as the order of the customer under section 4‑1202 or not enforceable in whole […]
§4-1205. Erroneous payment orders (1). If an accepted payment order was transmitted pursuant to a security procedure for the detection of error and the payment order erroneously instructed payment to a beneficiary not intended by the sender, erroneously instructed payment in an amount greater than the amount intended by the sender or was an erroneously […]
§4-1206. Transmission of payment order through funds transfer or other communication system (1). If a payment order addressed to a receiving bank is transmitted to a funds transfer system or other 3rd-party communication system for transmittal to the bank, the system is deemed to be an agent of the sender for the purpose of transmitting […]
§4-1207. Misdescription of beneficiary (1). Subject to subsection (2), if, in a payment order received by the beneficiary’s bank, the name, bank account number or other identification of the beneficiary refers to a nonexistent or unidentifiable person or account, no person has rights as a beneficiary of the order and acceptance of the order can […]
§4-1208. Misdescription of intermediary bank or beneficiary’s bank (1). This subsection applies to a payment order identifying an intermediary bank or the beneficiary’s bank only by an identifying number. (a). The receiving bank may rely on the number as the proper identification of the intermediary or beneficiary’s bank and need not determine whether the […]
§4-1209. Acceptance of payment order (1). Subject to subsection (4), a receiving bank other than the beneficiary’s bank accepts a payment order when it executes the order. [PL 1991, c. 812, §2 (NEW).] (2). Subject to subsections (3) and (4), a beneficiary’s bank accepts a payment order at the earliest of the following times: […]
§4-1210. Rejection of payment order (1). 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 […]
§4-1211. Cancellation and amendment of payment order (1). 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 […]
§4-1212. 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 […]
