Title 10, Commercial Laws
0 chapters · 458 sections in this title.
La. Rev. Stat. § 10:4A-103 Payment Order - Definitions
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§4A-103. Payment Order - Definitions (a) In this Chapter: (1) "Payment order" means an instruction of a sender to a receiving bank, transmitted orally or in a record, to pay, or to cause another bank to pay, a fixed or determinable amount of money to a beneficiary if: (i) the ins…
La. Rev. Stat. § 10:4A-104 Funds Transfer - Definitions
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§4A-104. Funds Transfer - Definitions In this Chapter: (a) "Funds transfer" means the series of transactions, beginning with the originator's payment order, made for the purpose of making payment to the beneficiary of the order. The term includes any payment order issued by the o…
La. Rev. Stat. § 10:4A-105 Other definitions
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§4A-105. Other definitions (a) In this Chapter: (1) "Authorized account" means a deposit account of a customer in a bank designated by the customer as a source of payment of payment orders issued by the customer to the bank. If a customer does not so designate an account, any acc…
La. Rev. Stat. § 10:4A-106 Time payment order is received
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§4A-106. Time payment order is received (a) The time of receipt of a payment order or communication cancelling or amending a payment order is determined by the rules applicable to receipt of a notice stated in R.S. 10:1-202. A receiving bank may fix a cut-off time or times on a f…
La. Rev. Stat. § 10:4A-107 Federal reserve regulations and operating circulars
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§4A-107. Federal reserve regulations and operating circulars Regulations of the Board of Governors of the Federal Reserve System and operating circulars of the Federal Reserve Banks supersede any inconsistent provision of this Chapter to the extent of the inconsistency. Added by …
La. Rev. Stat. § 10:4A-108 Relationship to the federal Electronic Fund Transfer Act
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§4A-108. Relationship to the federal Electronic Fund Transfer Act (a) Except as provided in Subsection (b) of this Section, this Chapter does not apply to a funds transfer any part of which is governed by the Electronic Fund Transfer Act of 1978 (Title XX, Public Law 95-630, 92 S…
La. Rev. Stat. § 10:4A-201 Security procedure
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§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 …
La. Rev. Stat. § 10:4A-202 Authorized and verified payment orders
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§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 ha…
La. Rev. Stat. § 10:4A-203 Unenforceability of certain verified payment orders
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§4A-203. Unenforceability of certain verified payment orders (a) If an accepted payment order is not, under R.S. 10:4A-202(a), an authorized order of a customer identified as sender, but is effective as an order of the customer pursuant to R.S. 10:4A-202(b), the following rules a…
La. Rev. Stat. § 10:4A-204 Refund of payment and duty of customer to report with respect to unauthorized payment order
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§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 R.S. …
La. Rev. Stat. § 10:4A-205 Erroneous payment orders
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§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…
La. Rev. Stat. § 10:4A-206 Transmission of payment order through funds-transfer or other communication
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§4A-206. Transmission of payment order through funds-transfer or other communication (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…
La. Rev. Stat. § 10:4A-207 Misdescription of beneficiary
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§4A-207. Misdescription of beneficiary (a) 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 ri…
La. Rev. Stat. § 10:4A-208 Misdescription of intermediary bank or beneficiary's bank
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§4A-208. Misdescription of intermediary bank or beneficiary's bank (a) This Subsection applies to a payment order identifying an intermediary bank or the beneficiary's bank only by an identifying number. (1) The receiving bank may rely on the number as the proper identification o…
La. Rev. Stat. § 10:4A-209 Acceptance of payment order
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§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 f…
La. Rev. Stat. § 10:4A-210 Rejection of payment order
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§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 or in a record. A notice of rejection need not use any particular words and is sufficient if it indicates that the receiving bank is…
La. Rev. Stat. § 10:4A-211 Cancellation and amendment of payment order
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§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 or in a record. If a security procedure is in effect between the sender and the receiving ban…
La. Rev. Stat. § 10:4A-212 Liability and duty of receiving bank regarding unaccepted payment order
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§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 thi…
La. Rev. Stat. § 10:4A-301 Execution and execution date
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§4A-301. Execution and execution date (a) A payment order is "executed" by the receiving bank when it issues a payment order intended to carry out the payment order received by the bank. A payment order received by the beneficiary's bank can be accepted but cannot be executed. (b…
La. Rev. Stat. § 10:4A-302 Obligations of receiving bank in execution of payment order
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§4A-302. Obligations of receiving bank in execution of payment order (a) Except as provided in Subsections (b) through (d), if the receiving bank accepts a payment order pursuant to R.S. 10:4A-209(a), the bank has the following obligations in executing the order: (1) The receivin…
La. Rev. Stat. § 10:4A-303 Erroneous execution of payment order
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§4A-303. Erroneous execution of payment order (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 i…
La. Rev. Stat. § 10:4A-304 Duty of sender to report erroneously executed payment order
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§4A-304. Duty of sender to report erroneously executed payment order If the sender of a payment order that is erroneously executed as stated in R.S. 10:4A-303 receives notification from the receiving bank that the order was executed or that the sender's account was debited with r…
La. Rev. Stat. § 10:4A-305 Liability for late or improper execution or failure to execute payment order
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§4A-305. Liability for late or improper execution or failure to execute payment order (a) If a funds transfer is completed but execution of a payment order by the receiving bank in breach of R.S. 10:4A-302 results in delay in payment to the beneficiary, the bank is obliged to pay…
La. Rev. Stat. § 10:4A-401 Payment date
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§4A-401. Payment date "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…
La. Rev. Stat. § 10:4A-402 Obligation of sender to pay receiving bank
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§4A-402. Obligation of sender to pay receiving bank (a) This Section is subject to R.S. 10:4A-205 and 4A-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 …
La. Rev. Stat. § 10:4A-403 Payment by sender to receiving bank
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§4A-403. Payment by sender to receiving bank (a) Payment of the sender's obligation under R.S. 10:4A-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 …
La. Rev. Stat. § 10:4A-404 Obligation of beneficiary's bank to pay and give notice to beneficiary
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§4A-404. Obligation of beneficiary's bank to pay and give notice to beneficiary (a) Subject to R.S. 10:4A-211(e), 4A-405(d), and 4A-405(e), if a beneficiary's bank accepts a payment order, the bank is obliged to pay the amount of the order to the beneficiary of the order. Payment…
La. Rev. Stat. § 10:4A-405 Payment by beneficiary's bank to beneficiary
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§4A-405. Payment by beneficiary's bank to beneficiary (a) If the beneficiary's bank credits an account of the beneficiary of a payment order, payment of the bank's obligation under R.S. 10:4A-404(a) occurs when and to the extent (i) the beneficiary is notified of the right to wit…
La. Rev. Stat. § 10:4A-406 Payment by originator to beneficiary; discharge of underlying obligation
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§4A-406. Payment by originator to beneficiary; discharge of underlying obligation (a) Subject to R.S. 10:4A-211(e), 4A-405(d), and 4A-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 …
La. Rev. Stat. § 10:4A-501 Variation by agreement and effect of funds-transfer system rule
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§4A-501. Variation by agreement and effect of funds-transfer system rule (a) Except as otherwise provided in this Chapter, the rights and obligations of a party to a funds transfer may be varied by agreement of the affected party. (b) "Funds-transfer system rule" means a rule of …
La. Rev. Stat. § 10:4A-502 Creditor process served on receiving bank; setoff by beneficiary's bank
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§4A-502. Creditor process served on receiving bank; setoff by beneficiary's bank (a) As used in this Section, "creditor process" means levy, attachment, garnishment, notice of lien, sequestration, or similar process issued by or on behalf of a creditor or other claimant with resp…
La. Rev. Stat. § 10:4A-503 Injunction or restraining order with respect to funds transfer
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§4A-503. Injunction or restraining order with respect to funds transfer For proper cause and in compliance with applicable law, a court may restrain (i) a person from issuing a payment order to initiate a funds transfer, (ii) an originator's bank from executing the payment order …
La. Rev. Stat. § 10:4A-504 Order in which items and payment orders may be charged to account; order of withdrawals from account
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§4A-504. Order in which items and payment orders may be charged to account; order of withdrawals from account (a) If a receiving bank has received more than one payment order of the sender or one or more payment orders and other items that are payable from the sender's account, t…
La. Rev. Stat. § 10:4A-505 Preclusion of objection to debit of customer's account
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§4A-505. Preclusion of objection to debit of customer's account If a receiving bank has received payment from its customer with respect to a payment order issued in the name of the customer as sender and accepted by the bank, and the customer received notification reasonably iden…
La. Rev. Stat. § 10:4A-506 Rate of interest
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§4A-506. Rate of interest (a) If, under this Chapter, a receiving bank is obliged to pay interest with respect to a payment order issued to the bank, the amount payable may be determined (i) by agreement of the sender and receiving bank, or (ii) by a funds-transfer system rule if…
La. Rev. Stat. § 10:4A-507 Choice of law
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§4A-507. Choice of law (a) The following rules apply unless the affected parties otherwise agree or Subsection (c) applies: (1) The rights and obligations between the sender of a payment order and the receiving bank are governed by the law of the jurisdiction in which the receivi…
La. Rev. Stat. § 10:5-101 Short title
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§5-101. Short title This Chapter shall be known and may be cited as Uniform Commercial Code -- Letters of Credit. Added by Acts 1974, No. 92, §1, eff. Jan. 1, 1975; Acts 1999, No. 171, §1, eff. Jan. 1, 2000; Acts 2006, No. 533, §5.
La. Rev. Stat. § 10:5-102 Definitions
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§5-102. Definitions (a) As used in this Chapter: (1) "Adviser" means a person who, at the request of the issuer, a confirmor, or another adviser, notifies, or requests another adviser to notify, the beneficiary that a letter of credit has been issued, confirmed, or amended. (2) "…
La. Rev. Stat. § 10:5-103 Scope
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§5-103. Scope (a) This Chapter applies to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit. (b) The statement of a rule in this Chapter does not by itself require, imply, or negate application of the same or a differe…
La. Rev. Stat. § 10:5-104 Formal requirements
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§5-104. Formal requirements A letter of credit, confirmation, advice, transfer, amendment, or cancellation may be issued in any form that is a signed record. Added by Acts 1974, No. 92, §1, eff. Jan. 1, 1975; Acts 1999, No. 171, §1, eff. Jan. 1, 2000; Acts 2024, No. 773, §1.
La. Rev. Stat. § 10:5-105 Consideration
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§5-105. Consideration Consideration is not required to issue, amend, transfer, or cancel a letter of credit, advice, or confirmation. Added by Acts 1974, No. 92, §1, eff. Jan. 1, 1975; Acts 1999, No. 171, §1, eff. Jan. 1, 2000.
La. Rev. Stat. § 10:5-106 Issuance, amendment, cancellation, and duration
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§5-106. Issuance, amendment, cancellation, and duration (a) A letter of credit is issued and becomes enforceable according to its terms against the issuer when the issuer sends or otherwise transmits it to the person requested to advise or to the beneficiary. A letter of credit i…
La. Rev. Stat. § 10:5-107 Confirmor, nominated person, and adviser
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§5-107. Confirmor, nominated person, and adviser (a) A confirmor is directly obligated on a letter of credit and has the rights and obligations of an issuer to the extent of its confirmation. The confirmor also has rights against and obligations to the issuer as if the issuer wer…
La. Rev. Stat. § 10:5-108 Issuer's rights and obligations
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§5-108. Issuer's rights and obligations (a) Except as otherwise provided in R.S. 10:5-109, an issuer shall honor a presentation that, as determined by the standard practice referred to in Subsection (e), appears on its face strictly to comply with the terms and conditions of the …
La. Rev. Stat. § 10:5-109 Fraud and forgery
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§5-109. Fraud and forgery (a) If a presentation is made that appears on its face strictly to comply with the terms and conditions of the letter of credit, but a required document is forged or materially fraudulent, or honor of the presentation would facilitate a material fraud by…
La. Rev. Stat. § 10:5-110 Warranties
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§5-110. Warranties (a) If its presentation is honored, the beneficiary warrants: (1) to the issuer, any other person to whom presentation is made, and the applicant that there is no fraud or forgery of the kind described in R.S. 10:5-109(a); and (2) to the applicant that the draw…
La. Rev. Stat. § 10:5-111 Remedies
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§5-111. Remedies (a) If an issuer wrongfully dishonors or repudiates its obligation to pay money under a letter of credit before presentation, the beneficiary, successor, or nominated person presenting on its own behalf may recover from the issuer the amount that is the subject o…
La. Rev. Stat. § 10:5-112 Transfer of letter of credit
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§5-112. Transfer of letter of credit (a) Except as otherwise provided in R.S. 10:5-113, unless a letter of credit provides that it is transferable, the right of a beneficiary to draw or otherwise demand performance under a letter of credit may not be transferred. (b) Even if a le…
La. Rev. Stat. § 10:5-113 Transfer by operation of law
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§5-113. Transfer by operation of law (a) A successor of a beneficiary may consent to amendments, sign and present documents, and receive payment or other items of value in the name of the beneficiary without disclosing its status as a successor. (b) A successor of a beneficiary m…
La. Rev. Stat. § 10:5-114 Assignment of proceeds
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§5-114. Assignment of proceeds (a) In this Section, "proceeds of a letter of credit" means the cash, check, accepted draft, or other item of value paid or delivered upon honor or giving of value by the issuer or any nominated person under the letter of credit. The term does not i…