“Security procedure” means a procedure established by agreement of a customer and a receiving bank for the purpose of: Verifying that a payment order or communication amending or cancelling a payment order is that of the customer; or Detecting error in the transmission or the content of the payment order or communication. A security procedure […]
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. If a bank and its customer have agreed that the authenticity of payment orders issued to the bank in the […]
If an accepted payment order is not, under § 47-4A-202(a), an authorized order of a customer identified as sender, but is effective as an order of the customer pursuant to § 47-4A-202(b), the following rules apply: By express written agreement, the receiving bank may limit the extent to which it is entitled to enforce or […]
If a receiving bank accepts a payment order issued in the name of its customer as sender which is: 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 […]
If an accepted payment order was transmitted pursuant to a security procedure for the detection of error and the payment order: The following rules apply: If the sender proves that the sender or a person acting on behalf of the sender pursuant to § 47-4A-206 complied with the security procedure and that the error would […]
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 payment order to the bank. If there is a discrepancy between the terms […]
Subject to subsection (b), 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 cannot occur. If a payment order […]
This subsection applies to a payment order identifying an intermediary bank or the beneficiary’s bank only by an identifying number. 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 number identifies a bank. The sender is obliged to compensate the […]
Subject to subsection (d), a receiving bank other than the beneficiary’s bank accepts a payment order when it executes the order. Subject to subsections (c) and (d), a beneficiary’s bank accepts a payment order at the earliest of the following times: When the bank: When the bank receives payment of the entire amount of the […]
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. […]
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 […]
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 chapter, but does not otherwise have any duty to accept a payment order or, before acceptance, to […]
