Title Minnesota Statutes, Minnesota Statutes

336.4A-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 section 336.4A-209(a), the bank has the following obligations in executing the order: (1) The r…

336.4A-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 the…

336.4A-304 DUTY OF SENDER TO REPORT ERRONEOUSLY EXECUTED PAYMENT ORDER. If the sender of a payment order that is erroneously executed as stated in section 336.4A-303 receives notification from the receiving bank that the order was executed or that the sender's account was debited…

336.4A-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 section 336.4A-302 results in delay in payment to the beneficiary, the bank is obliged…

336.4A-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 recei…

336.4A-402 OBLIGATION OF SENDER TO PAY RECEIVING BANK. (a) This section is subject to sections 336.4A-205 and 336.4A-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…

336.4A-403 PAYMENT BY SENDER TO RECEIVING BANK. (a) Payment of the sender's obligation under section 336.4A-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 F…

336.4A-404 OBLIGATION OF BENEFICIARY'S BANK TO PAY AND GIVE NOTICE TO BENEFICIARY. (a) Subject to sections 336.4A-211(e), 336.4A-405(d), and 336.4A-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 th…

336.4A-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 section 336.4A-404(a) occurs when and to the extent (i) the beneficiary is notified of the right…

336.4A-406 PAYMENT BY ORIGINATOR TO BENEFICIARY; DISCHARGE OF UNDERLYING OBLIGATION. (a) Subject to sections 336.4A-211(e), 336.4A-405(d), and 336.4A-405(e), the originator of a funds transfer pays the beneficiary of the originator's payment order (i) at the time a payment order …

336.4A-501 VARIATION BY AGREEMENT AND EFFECT OF FUNDS-TRANSFER SYSTEM RULE. (a) 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. (b) "Funds-transfer system rule" means a rule …

336.4A-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 r…

336.4A-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 ord…

336.4A-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…

336.4A-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 i…

336.4A-506 RATE OF INTEREST. (a) 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 (i) by agreement of the sender and receiving bank, or (ii) by a funds-transfer system rule…

336.4A-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 rece…

336.5-101 MS 1996 [Repealed, 1997 c 11 art 1 s 20] 336.5-101 SHORT TITLE. This article may be cited as Uniform Commercial Code-Letters of Credit. History: 1997 c 11 art 1 s 1

336.5-102 MS 1996 [Repealed, 1997 c 11 art 1 s 20] 336.5-102 DEFINITIONS. (a) In this article: (1) "Adviser" means a person who, at the request of the issuer, a confirmer, or another adviser, notifies or requests another adviser to notify the beneficiary that a letter of credit h…

336.5-103 MS 1996 [Repealed, 1997 c 11 art 1 s 20] 336.5-103 SCOPE. (a) This article 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 article does not by itself require,…

336.5-104 MS 1996 [Repealed, 1997 c 11 art 1 s 20] 336.5-104 FORMAL REQUIREMENTS. A letter of credit, confirmation, advice, transfer, amendment, or cancellation may be issued in any form that is a signed record. History: 1997 c 11 art 1 s 4; 2024 c 93 art 6 s 1

336.5-105 MS 1996 [Repealed, 1997 c 11 art 1 s 20] 336.5-105 CONSIDERATION. Consideration is not required to issue, amend, transfer, or cancel a letter of credit, advice, or confirmation. History: 1997 c 11 art 1 s 5

336.5-106 MS 1996 [Repealed, 1997 c 11 art 1 s 20] 336.5-106 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…

336.5-107 MS 1996 [Repealed, 1997 c 11 art 1 s 20] 336.5-107 CONFIRMER, NOMINATED PERSON, AND ADVISER. (a) A confirmer is directly obligated on a letter of credit and has the rights and obligations of an issuer to the extent of its confirmation. The confirmer also has rights agai…

336.5-108 MS 1996 [Repealed, 1997 c 11 art 1 s 20] 336.5-108 ISSUER'S RIGHTS AND OBLIGATIONS. (a) Except as otherwise provided in section 336.5-109, an issuer shall honor a presentation that, as determined by the standard practice referred to in subsection (e), appears on its fac…

336.5-109 MS 1996 [Repealed, 1997 c 11 art 1 s 20] 336.5-109 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…

336.5-110 MS 1996 [Repealed, 1997 c 11 art 1 s 20] 336.5-110 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 se…

336.5-111 MS 1996 [Repealed, 1997 c 11 art 1 s 20] 336.5-111 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 re…

336.5-112 MS 1996 [Repealed, 1997 c 11 art 1 s 20] 336.5-112 TRANSFER OF LETTER OF CREDIT. (a) Except as otherwise provided in section 336.5-113, unless a letter of credit provides that it is transferable, the right of a beneficiary to draw or otherwise demand performance under a…

336.5-113 MS 1996 [Repealed, 1997 c 11 art 1 s 20] 336.5-113 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 sta…

336.5-114 MS 1996 [Repealed, 1997 c 11 art 1 s 20] 336.5-114 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 …

336.5-115 MS 1996 [Repealed, 1997 c 11 art 1 s 20] 336.5-115 STATUTE OF LIMITATIONS. An action to enforce a right or obligation arising under this article must be commenced within one year after the expiration date of the relevant letter of credit or one year after the claim for …

336.5-116 MS 1996 [Repealed, 1997 c 11 art 1 s 20] 336.5-116 CHOICE OF LAW AND FORUM. (a) The liability of an issuer, nominated person, or adviser for action or omission is governed by the law of the jurisdiction chosen by an agreement in the form of a record signed by the affect…

336.5-117 MS 1996 [Repealed, 1997 c 11 art 1 s 20] 336.5-117 SUBROGATION OF ISSUER, APPLICANT, AND NOMINATED PERSON. (a) An issuer that honors a beneficiary's presentation is subrogated to the rights of the beneficiary to the same extent as if the issuer were a secondary obligor …

336.5-118 SECURITY INTEREST OF ISSUER OR NOMINATED PERSON. (a) An issuer or nominated person has a security interest in a document presented under a letter of credit to the extent that the issuer or nominated person honors or gives value for the presentation. (b) So long as and t…

336.7-101 MS 2002 [Repealed, 2004 c 162 art 4 s 43] 336.7-101 SHORT TITLE. This article may be cited as Uniform Commercial Code - Documents of Title. History: 2004 c 162 art 4 s 1

336.7-102 MS 2002 [Repealed, 2004 c 162 art 4 s 43] 336.7-102 DEFINITIONS AND INDEX OF DEFINITIONS. (a) In this article, unless the context otherwise requires: (1) "Bailee" means a person that by a warehouse receipt, bill of lading, or other document of title acknowledges possess…

336.7-103 MS 2002 [Repealed, 2004 c 162 art 4 s 43] 336.7-103 RELATION OF ARTICLE TO TREATY OR STATUTE. (a) This article is subject to any treaty or statute of the United States or regulatory statute of this state to the extent the treaty, statute, or regulatory statute is applic…

336.7-104 MS 2002 [Repealed, 2004 c 162 art 4 s 43] 336.7-104 NEGOTIABLE AND NONNEGOTIABLE DOCUMENT OF TITLE. (a) Except as otherwise provided in subsection (c), a document of title is negotiable if by its terms the goods are to be delivered to bearer or to the order of a named p…

336.7-105 MS 2002 [Repealed, 2004 c 162 art 4 s 43] 336.7-105 REISSUANCE IN ALTERNATIVE MEDIUM. (a) Upon request of a person entitled under an electronic document of title, the issuer of the electronic document may issue a tangible document of title as a substitute for the electr…

336.7-106 CONTROL OF ELECTRONIC DOCUMENT OF TITLE. (a) A person has control of an electronic document of title if a system employed for evidencing the transfer of interests in the electronic document reliably establishes that person as the person to which the electronic document …

336.7-201 MS 2002 [Repealed, 2004 c 162 art 4 s 43] 336.7-201 PERSON THAT MAY ISSUE A WAREHOUSE RECEIPT; STORAGE UNDER BOND. (a) A warehouse receipt may be issued by any warehouse. (b) If goods, including distilled spirits and agricultural commodities, are stored under a statute …

336.7-202 MS 2002 [Repealed, 2004 c 162 art 4 s 43] 336.7-202 FORM OF WAREHOUSE RECEIPT; EFFECT OF OMISSION. (a) A warehouse receipt need not be in any particular form. (b) Unless a warehouse receipt provides for each of the following, the warehouse is liable for damages caused t…

336.7-203 MS 2002 [Repealed, 2004 c 162 art 4 s 43] 336.7-203 LIABILITY FOR NONRECEIPT OR MISDESCRIPTION. A party to or purchaser for value in good faith of a document of title, other than a bill of lading, that relies upon the description of the goods in the document may recover…

336.7-204 MS 2002 [Repealed, 2004 c 162 art 4 s 43] 336.7-204 DUTY OF CARE; CONTRACTUAL LIMITATION OF WAREHOUSE'S LIABILITY. (a) A warehouse is liable for damages for loss of or injury to the goods caused by its failure to exercise care with regard to the goods that a reasonably …

336.7-205 MS 2002 [Repealed, 2004 c 162 art 4 s 43] 336.7-205 TITLE UNDER WAREHOUSE RECEIPT DEFEATED IN CERTAIN CASES. A buyer in ordinary course of business of fungible goods sold and delivered by a warehouse that is also in the business of buying and selling such goods takes th…