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2 chapters · 613 sections in this title.
Mich. Comp. Laws § 440.4216 Payor or collecting bank; suspension of payments.
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Sec. 4216. (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 …
Mich. Comp. Laws § 440.4301 Demand items; recovery of settlement; time of dishonor; return of items.
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Sec. 4301. (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 …
Mich. Comp. Laws § 440.4302 Payor bank; accountability upon presentment and receipt of item; defenses.
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Sec. 4302. (1) If an item is presented on and received by a payor bank the bank is accountable for the amount of the following: (a) A demand item other than a documentary draft whether properly payable or not if the bank, in any case where it is not also the depositary bank, reta…
Mich. Comp. Laws § 440.4303 Payor bank; items subject to knowledge notice, stop-payment order, legal process, or setoff; order in which times may be handled.
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Sec. 4303. (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 k…
Mich. Comp. Laws § 440.4401 Payor bank; charge against customer's account.
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Sec. 4401. (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 c…
Mich. Comp. Laws § 440.4402 Payor bank; wrongful dishonor; liability to customer; determination of account balance.
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Sec. 4402. (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 l…
Mich. Comp. Laws § 440.4403 Customer's right to stop payment; lapse and renewal; burden of proof of loss.
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Sec. 4403. (1) A customer or any person authorized to draw on the account if there is more than 1 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 …
Mich. Comp. Laws § 440.4404 Payment of checks more than 6 months old.
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Sec. 4404. 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.
Mich. Comp. Laws § 440.4405 Death or incompetence of customer.
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Sec. 4405. (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 coll…
Mich. Comp. Laws § 440.4406 Statement of account; identification of items paid; retention of items or copies; customer's duty to discover and report unauthorized signature or alteration; failure to comply with subsection (3); failure of bank to exercise ordinary care in paying item; time limitation.
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Sec. 4406. (1) 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 custom…
Mich. Comp. Laws § 440.4407 Improper payment; subrogation of payor bank.
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Sec. 4407. 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 necess…
Mich. Comp. Laws § 440.4501 Documentary draft; presentment, notice of dishonor.
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Sec. 4501. A bank which takes a documentary draft for collection must present or send the draft and accompanying documents for presentment and upon learning that the draft has not been paid or accepted in due course must seasonably notify its customer of such fact even though it …
Mich. Comp. Laws § 440.4502 Documentary draft; presentment on arrival of goods, refusal for non-arrival; notice to transferor.
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Sec. 4502. When a draft or the relevant instructions require presentment "on arrival", "when goods arrive" or the like, the collecting bank need not present until in its judgment a reasonable time for arrival of the goods has expired. Refusal to pay or accept because the goods ha…
Mich. Comp. Laws § 440.4503 Documentary draft; responsibility of presenting bank for documents and goods; report of reasons for dishonor; referees; expenses.
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Sec. 4503. Unless otherwise instructed and except as provided in article 5 a bank presenting a documentary draft (a) must deliver the documents to the drawee on acceptance of the draft if it is payable more than 3 days after presentment; otherwise, only on payment; and (b) upon d…
Mich. Comp. Laws § 440.4504 Documentary draft; presenting bank's right to deal with goods; lien for expenses.
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Sec. 4504. (1) A presenting bank which, following the dishonor of a documentary draft, has seasonably requested instructions but does not receive them within a reasonable time may store, sell, or otherwise deal with the goods in any reasonable manner. (2) For its reasonable expen…
Mich. Comp. Laws § 440.4601 Short title.
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Sec. 4A101. This article shall be known and may be cited as "uniform commercial code—funds transfers".
Mich. Comp. Laws § 440.4602 Applicability of article.
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Sec. 4A102. Except as otherwise provided in section 4A108, this article applies to funds transfers defined in section 4A104.
Mich. Comp. Laws § 440.4603 Definitions; instruction as a separate payment order; issuance of payment order.
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Sec. 4A103. (1) As used in this article: (a) "Payment order" means an instruction of a sender to a receiving bank, transmitted orally, electronically, or in writing, to pay, or to cause another bank to pay, a fixed or determinable amount of money to a beneficiary if the following…
Mich. Comp. Laws § 440.4604 Definitions.
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Sec. 4A104. As used in this article: (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 originator's bank o…
Mich. Comp. Laws § 440.4605 Definitions; sections where other definitions appear.
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Sec. 4A105. (1) As used in this article: (a) "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 account of…
Mich. Comp. Laws § 440.4606 Payment order or communication canceling or amending payment order; determining time of receipt.
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Sec. 4A106. (1) The time of receipt of a payment order or communication canceling or amending a payment order is determined by the rules applicable to receipt of a notice stated in section 1202. A receiving bank may fix a cut-off time or times on a funds transfer business day for…
Mich. Comp. Laws § 440.4607 Regulations of federal reserve system as superseding article.
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Sec. 4A107. 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 article to the extent of the inconsistency.
Mich. Comp. Laws § 440.4608 Applicability of article to certain funds transfer; inconsistency; "electronic fund transfer act" defined.
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Sec. 4A108. (1) Except as provided in subsection (2), this article does not apply to a funds transfer any part of which is governed by the electronic fund transfer act. (2) This article applies to a funds transfer that is a remittance transfer as defined in 15 USC 1693o-1, unless…
Mich. Comp. Laws § 440.4701 “Security procedure” defined.
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Sec. 4A201. "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 canceling a payment order is that of the customer, or (ii) detecting error in the tran…
Mich. Comp. Laws § 440.4702 Authorized payment order; verification by security procedure; determination of commercial reasonableness; “sender” defined; applicability of section to amendments and cancellations of payment orders; agreement to vary rights and obligations prohibited.
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Sec. 4A202. (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. (2) If a bank and its customer have agreed that the authenticity of p…
Mich. Comp. Laws § 440.4703 Payment order effective pursuant to MCL 440.4702; application of rules; applicability of section to amendments of payment orders.
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Sec. 4A203. (1) If an accepted payment order is not, under section 4A202(1), an authorized order of a customer identified as sender, but is effective as an order of the customer pursuant to section 4A202(2), the following rules apply: (a) By express written agreement, the receivi…
Mich. Comp. Laws § 440.4704 Receiving bank; acceptance of unauthorized or nonenforceable payment; refund; interest; recovery; reasonable time fixed by agreement; agreement to vary obligation to refund payment prohibited.
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Sec. 4A204. (1) 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 section 4A202, or (ii) not enforceable, in whole or in part, against the customer under sectio…
Mich. Comp. Laws § 440.4705 Erroneous payment order; duty and liability of sender upon notification from receiving bank; applicability of section to amendments to payment orders.
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Sec. 4A205. (1) 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 in an amount greater …
Mich. Comp. Laws § 440.4706 Transmitting payment order to funds-transfer system or other third-party communication system; system as agent; effect of discrepancy; applicability of section.
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Sec. 4A206. (1) 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…
Mich. Comp. Laws § 440.4707 Payment order; identification of beneficiary; nonexistent or unidentifiable person or account; name and number identifying different persons; inconsistent identification by name and number; recovery of amount paid.
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Sec. 4A207. (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 th…
Mich. Comp. Laws § 440.4708 Payment order; identification of intermediary or beneficiary bank; rules.
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Sec. 4A208. (1) The following rules apply 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…
Mich. Comp. Laws § 440.4709 Acceptance of payment order.
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Sec. 4A209. (1) Subject to subsection (4), a receiving bank other than the beneficiary's bank accepts a payment order when it executes the order. (2) Subject to subsections (3) and (4), a beneficiary's bank accepts a payment order at the earliest of the following times: (a) When …
Mich. Comp. Laws § 440.4710 Rejection of payment order.
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Sec. 4A210. (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 rejecti…
Mich. Comp. Laws § 440.4711 Communication by sender canceling or amending payment order; method of transmission; effectiveness; liability of sender for loss and expenses; revocation by death or legal incapacity; effectiveness of funds-transfer system rule.
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Sec. 4A211. (1) A communication of the sender of a payment order canceling 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 no…
Mich. Comp. Laws § 440.4712 Receiving bank; failure to accept payment order; liability for breach of agreement to accept payment order.
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Sec. 4A212. 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 o…
Mich. Comp. Laws § 440.4801 Execution of payment order; “execution date” defined.
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Sec. 4A301. (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 cannot be executed. (2) "Execution date" of a pa…
Mich. Comp. Laws § 440.4802 Receiving bank; acceptance of payment order pursuant to MCL 440.4709(1); obligations of bank to execute order; use of funds-transfer system; transmission by first-class mail or reasonable means; payment of charges for services and expenses.
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Sec. 4A302. (1) Except as provided in subsections (2) through (4), if the receiving bank accepts a payment order pursuant to section 4A209(1), the bank has the following obligations in executing the order: (a) The receiving bank is obliged to issue, on the execution date, a payme…
Mich. Comp. Laws § 440.4803 Receiving bank; payment of sender's order pursuant to MCL 440.4902(3); effect of erroneous payment order; applicability of subsection (2); obligation of sender to pay payment order; recovery by issuer from beneficiary.
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Sec. 4A303. (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 pay…
Mich. Comp. Laws § 440.4804 Notification from receiving bank of erroneously executed payment order; duties of sender; obligation to pay interest; recovery by bank prohibited.
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Sec. 4A304. If the sender of a payment order that is erroneously executed as stated in section 4A303 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 ord…
Mich. Comp. Laws § 440.4805 Receiving bank; payment delay; interest; liability to originator for expenses resulting from improper execution; recovery of damages; failure to execute pursuant to express agreement; attorney fees; liability of bank under subsections (1) and (2) not varied by agreement.
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Sec. 4A305. (1) If a funds transfer is completed but execution of a payment order by the receiving bank in breach of section 4A302 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…
Mich. Comp. Laws § 440.4901 “Payment date” defined.
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Sec. 4A401. "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 be…
Mich. Comp. Laws § 440.4902 Payment order issued to beneficiary or receiving bank subject to MCL 440.4705 and 440.4707; payment by sender; refund; right of sender executing payment order to receive or retain payment; right of sender to be excused from obligation to pay or receive refund not varied by agreement.
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Sec. 4A402. (1) This section is subject to sections 4A205 and 4A207. (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…
Mich. Comp. Laws § 440.4903 Sender's obligation under MCL 440.4902 to pay receiving bank; payment requirements; final settlement; satisfaction of sender's payment obligation.
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Sec. 4A403. (1) Payment of the sender's obligation under section 4A402 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-tr…
Mich. Comp. Laws § 440.4904 Beneficiary bank; acceptance of payment order subject to MCL 440.4711(5), 440.4905(4), and 440.4905(5); payment due date; refusal of bank to pay after demand; recovery of damages; instruction to pay to beneficiary's account; notice; interest; attorney fees; rights of beneficiary pursuant to agreement or funds-transfer system rule.
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Sec. 4A404. (1) Subject to sections 4A211(5), 4A405(4), and 4A405(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 if acceptance occurs on …
Mich. Comp. Laws § 440.4905 Beneficiary bank; crediting account of beneficiary of payment order; payment of bank obligations under MCL 440.4904(1); time of payment; condition to payment or agreement; provisional payments to beneficiary under funds-transfer system rule; refund; applicability of subsection (5) to certain funds transfer.
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Sec. 4A405. (1) If the beneficiary's bank credits an account of the beneficiary of a payment order, payment of the bank's obligation under section 4A404(1) occurs when and to the extent (i) the beneficiary is notified of the right to withdraw the credit, (ii) the bank lawfully ap…
Mich. Comp. Laws § 440.4906 Originator of funds transfer; conditions for payment to beneficiary; satisfaction and discharge of obligation; determination; rights varied by agreement.
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Sec. 4A406. (1) Subject to sections 4A211(5), 4A405(4), and 4A405(5), 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 tr…
Mich. Comp. Laws § 440.4951 Rights and obligations of party to funds transfer varied by agreement of affected party; “funds-transfer system rule” defined.
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Sec. 4A501. (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 (i) governing transmission of payment…
Mich. Comp. Laws § 440.4952 “Creditor process” defined and explained.
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Sec. 4A502. (1) 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 respect to an account. (2) This subsection applies to creditor process wi…
Mich. Comp. Laws § 440.4953 Powers of court with respect to funds transfer.
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Sec. 4A503. 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 of the originator, or (iii) the beneficiary's bank from rele…
Mich. Comp. Laws § 440.4954 Receiving bank; authority to charge sender's account; credits.
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Sec. 4A504. (1) If a receiving bank has received more than 1 payment order of the sender or 1 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. …