Title 11, Title 11

(1). 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 bank, the communication is not effective to cancel or a…

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 any duty to accept a payment order or befor…

(1). 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 can not be executed. (2). "Execution date" of a payment ord…

(1). Except as provided in subsections (2) to (4), if the receiving bank accepts a payment order pursuant to section 4‑1209, subsection (1), the bank has the following obligations in executing the order. (a). The receiving bank is obliged to issue, on the execution date, a paymen…

(1). A receiving bank that 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 issues a payment order in execution of the sender's order and then issues a duplicate order is entitled to payment of the a…

If the sender of a payment order that is erroneously executed as stated in section 4‑1303 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 …

(1). If a funds transfer is completed but execution of a payment order by the receiving bank in breach of section 4‑1302 results in delay in payment to the beneficiary, the bank is obliged to pay interest to either the originator or the beneficiary of the funds transfer for the p…

"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 can not be earlier than the day the order is received by the beneficiary's…

(1). This section is subject to sections 4‑1205 and 4‑1207. (2). 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 o…

(1). Payment of the sender's obligation under section 4‑1402 to pay the receiving bank occurs as follows. (a). 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 sy…

(1). Subject to section 4‑1211, subsection (5), and section 4‑1405, subsections (4) and (5), 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 is due on the payment date of the order, but i…

(1). If the beneficiary's bank credits an account of the beneficiary of a payment order, payment of the bank's obligation under section 4‑1404, subsection (1) occurs when and to the extent: (a). The beneficiary is notified of the right to withdraw the credit; [PL 1991, c. 812, §2…

(1). Subject to section 4‑1211, subsection (5) and section 4‑1405, subsections (4) and (5), the originator of a funds transfer pays the beneficiary of the originator's payment order at the time a payment order for the benefit of the beneficiary is accepted by the beneficiary's ba…

(1). Except as otherwise provided in this Article, the rights and obligations of a party to a funds transfer may be varied by agreement of the affected party. (2). "Funds transfer system rule" means a rule of an association of banks: (a). Governing transmission of payment orders …

(1). As used in this section, "creditor process" means levy, attachment, garnishment, notice of lien, sequestration or a similar process issued by or on behalf of a creditor or other claimant with respect to an account. (2). This subsection applies to the creditor process with re…

For proper cause and in compliance with applicable law, a court may restrain: [PL 1991, c. 812, §2 (NEW).] (1). A person from issuing a payment order to initiate a funds transfer; (2). An originator's bank from executing the payment order of the originator; or (3). The beneficiar…

(1). 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, the bank may charge the sender's account with respect to the various orders and items in any sequence. (2). In…

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 identifying the order, the customer is precluded from asserting that …

(1). If, under this Article, a receiving bank is obliged to pay interest with respect to a payment order issued to the bank, the amount payable may be determined: (a). By agreement of the sender and receiving bank; or [PL 1991, c. 812, §2 (NEW).] (b). By a funds transfer system r…

(1). The following rules apply unless the affected parties otherwise agree or subsection (3) applies. (a). 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 receiving bank is located. […

(1). Unless a contrary intent clearly appears and before the time that a settlement given by a collecting bank for an item is or becomes final, the bank, with respect to the item, is an agent or subagent of the owner of the item and any settlement given for the item is provisiona…

(1). A collecting bank must exercise ordinary care in: (a). Presenting an item or sending it for presentment; [PL 1993, c. 293, Pt. B, §19 (AMD).] (b). Sending notice of dishonor or nonpayment or returning an item other than a documentary draft to the bank's transferor after lear…

Subject to Article 3‑A concerning conversion of instruments (section 3‑1420) and restrictive indorsements (section 3‑1206) only a collecting bank's transferor can give instructions that affect the bank or constitute notice to it and a collecting bank is not liable to prior partie…

(1). A collecting bank shall send items by a reasonably prompt method, taking into consideration relevant instructions, the nature of the item, the number of those items on hand, the cost of collection involved and the method generally used by it or others to present those items.…

If a customer delivers an item to a depositary bank for collection: [PL 1993, c. 293, Pt. B, §22 (NEW).] (1). The depositary bank becomes a holder of the item at the time it receives the item for collection if the customer at the time of delivery was a holder of the item, whether…

Any agreed method that identifies the transferor bank is sufficient for the item's further transfer to another bank.

(1). A customer or collecting bank that transfers an item and receives a settlement or other consideration warrants to the transferee and to any subsequent collecting bank that: (a). The warrantor is a person entitled to enforce the item; [PL 1993, c. 293, Pt. B, §25 (NEW).] (b).…

(1). If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, the person obtaining payment or acceptance, at the time of presentment, and a previous transferor of the draft, at the time of transfer, warrant to the drawe…

(1). A person who encodes information on or with respect to an item after issue warrants to any subsequent collecting bank and to the payor bank or other payor that the information is correctly encoded. If the customer of a depositary bank encodes, that bank also makes the warran…

(1). A collecting bank has a security interest in an item and any accompanying documents or the proceeds of either: (a). In case of an item deposited in an account, to the extent to which credit given for the item has been withdrawn or applied; (b). In case of an item for which i…

For purposes of determining its status as a holder in due course, a bank has given value to the extent it has a security interest in an item, if the bank otherwise complies with the requirements of section 3‑1302 on what constitutes a holder in due course.

(1). Unless otherwise instructed, a collecting bank may present an item not payable by, through or at a bank by sending to the party to accept or pay a written notice that the bank holds the item for acceptance or payment. The notice must be sent in time to be received on or befo…

(1). With respect to settlement by a bank, the medium and time of settlement may be prescribed by Federal Reserve regulations or circulars, clearinghouse rules and the like or agreement. In the absence of such prescription: (a). The medium of settlement is cash or credit to an ac…

(1). If a collecting bank has made provisional settlement with its customer for an item and fails by reason of dishonor, suspension of payments by a bank or otherwise to receive settlement for the item which is or becomes final, the bank may revoke the settlement given by it, cha…

(1). An item is finally paid by a payor bank when the bank has first done any of the following: (a). Paid the item in cash; [PL 1993, c. 293, Pt. B, §34 (AMD).] (b). Settled for the item without having a right to revoke the settlement under statute, clearinghouse rule or agreemen…

(1). If an item is in or comes into the possession of a payor or collecting bank that suspends payment and the item has not been finally paid, the item must be returned by the receiver, trustee or agent in charge of the closed bank to the presenting bank or the closed bank's cust…

(1). If a payor bank settles for a demand item other than a documentary draft presented otherwise than for immediate payment over the counter before midnight of the banking day of receipt, the payor bank may revoke the settlement and recover the settlement, if, before it has made…

(1). If an item is presented to and received by a payor bank, the bank is accountable for the amount of: (a). A demand item, other than a documentary draft, whether properly payable or not, if the bank, in any case in which it is not also the depositary bank, retains the item bey…

(1). Any knowledge, notice or stop-payment order received by, legal process served upon or setoff exercised by a payor bank comes too late to terminate, suspend or modify the bank's right or duty to pay an item or to charge its customer's account for the item if the knowledge, no…

(1). A bank may charge against the account of a customer an item that is properly payable from that account even though the charge creates an overdraft. An item is properly payable if it is authorized by the customer and is in accordance with any agreement between the customer an…

(1). Except as otherwise provided in this Article, a payor bank wrongfully dishonors an item if it dishonors an item that is properly payable, but a bank may dishonor an item that would create an overdraft unless it has agreed to pay the overdraft. (2). A payor bank is liable to …

(1). A customer or any person authorized to draw on the account if there is more than one person may stop payment of any item drawn on the customer's account or close the account by an order to the bank describing the item or account with reasonable certainty received at a time a…

A bank is under no obligation to a customer having a checking account to pay a check, other than a certified check, which is presented more than 6 months after its date, but it may charge its customer's account for a payment made thereafter in good faith.

(1). A payor or collecting bank's authority to accept, pay or collect an item or to account for proceeds of its collection, if otherwise effective, is not rendered ineffective by incompetence of a customer of either bank existing at the time the item is issued or its collection i…

(1). (1-A). A bank that sends or makes available to a customer a statement of account showing payment of items for the account shall either return or make available to the customer the items paid or provide information in the statement of account sufficient to allow the customer …

If a payor bank has paid an item over the order of the drawer or maker to stop payment, or after an account has been closed, or otherwise under circumstances giving a basis for objection by the drawer or maker, to prevent unjust enrichment and only to the extent necessary to prev…