Title 30, Title 30

(1) If an instrument is issued for value given for the benefit of a party to the instrument ("accommodated party") and another party to the instrument ("accommodation party") signs the instrument for the purpose of incurring liability on the instrument without being a direct bene…

(1) A person who transfers an instrument for consideration warrants to the transferee and, if the transfer is by indorsement, to any subsequent transferee that: (a) the warrantor is a person entitled to enforce the instrument; (b) all signatures on the instrument are authentic an…

(1) The law applicable to conversion of personal property applies to instruments. An instrument is also converted if the instrument lacks an indorsement necessary for negotiation and it is purchased or taken for collection or the drawee takes the instrument and makes payment to a…

(1) This section applies to fraudulent indorsements of instruments with respect to which an employer has entrusted an employee with responsibility as part of the employee's duties. The following definitions apply to this section: (a) "Employee" includes, in addition to an employe…

(1) In this section, "obligated bank" means the acceptor of a certified check or the issuer of a cashier's check or teller's check bought from the issuer. (2) If the obligated bank wrongfully refuses to pay a cashier's check or certified check, stops payment of a teller's check, …

(1) An acceptor of a draft is obliged to pay the draft: (a) according to its terms at the time it was accepted, even though the acceptance states that the draft is payable "as originally drawn" or equivalent terms; (b) if the acceptance varies the terms of the draft, according to…

(1) If an unaccepted draft is dishonored, the drawer is obliged to pay the draft: (a) according to its terms at the time it was issued or, if not issued, at the time it first came into possession of a holder; or (b) if the drawer signed an incomplete instrument, according to its …

(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 drawee…

(1) Except as provided in subsection (3), if the drawee of a draft pays or accepts the draft and the drawee acted on the mistaken belief that payment of the draft had not been stopped under 30-4-403, the signature of the purported drawer of the draft was authorized, or the balanc…

(1) "Presentment" means a demand: (a) to pay an instrument made to the maker, drawee, or acceptor or, in the case of a note of accepted draft payable at a bank, to the bank; or (b) to accept a draft made to the drawee by a person entitled to enforce the instrument. (2) Subject to…

(1) The obligation of an indorser stated in 30-3-414(1) and the obligation of a drawer stated in 30-3-423(3) may not be enforced unless: (a) the indorser or drawer is given notice of dishonor of the instrument complying with this section; or (b) notice of dishonor is excused unde…

(1) The following are admissible as evidence and create a presumption of dishonor and of any notice of dishonor stated: (a) a document regular in form as provided in subsection (2) that purports to be a protest; (b) the purported stamp or writing of the drawee, payor bank, or pre…

(1) Dishonor of a note is governed by the following rules: (a) If the note is payable on demand, the note is dishonored if presentment is duly made and the note is not paid on the day of presentment. (b) If the note is not payable on demand and is payable at or through a bank or …

(1) Presentment for payment or acceptance of an instrument is excused if: (a) the person entitled to present the instrument cannot with reasonable diligence make presentment; (b) the maker or acceptor has repudiated an obligation to pay the instrument or is dead or in insolvency …

(1) The obligation of a party to pay the instrument is discharged as stated in this chapter or by an act or agreement with the party that would discharge an obligation to pay money under a simple contract. (2) Discharge of the obligation of a party is not effective against a pers…

(1) Subject to subsection (2), an instrument is paid to the extent payment is made by or on behalf of a party obliged to pay the instrument and to a person entitled to enforce the instrument. To the extent of the payment, the obligation of the party obliged to pay the instrument …

(1) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect of tender is governed by principles of law applicable to tender of payment under a simple contract. (2) If tender of payment of an obligation to pay a…

(1) A person entitled to enforce an instrument may, with or without consideration, discharge the obligation of a party to pay the instrument: (a) by an intentional voluntary act, such as surrender of the instrument to the party; destruction, mutilation, or cancellation of the ins…

(1) For the purposes of this section, the term "indorser" includes a drawer having the obligation stated in 30-3-423(3). (2) Discharge of the obligation of a party to the instrument under 30-3-605 does not discharge the obligation of an indorser or accommodation party having a ri…

This chapter shall be known and may be cited as Uniform Commercial Code--Bank Deposits and Collections.

This chapter may be cited as Uniform Commercial Code--Funds Transfers.

(1) To the extent that items within this chapter are also within the scope of chapters 3, 5, and 8, they are subject to the provisions of those chapters. In the event of conflict the provisions of this chapter govern those of chapter 3 but the provisions of chapters 5 and 8 gover…

Except as otherwise provided in 30-4A-108, this chapter applies to funds transfers defined in 30-4A-104.

(1) The effect of the provisions of this chapter may be varied by agreement, but the parties to the agreement may not disclaim a bank's responsibility for its own lack of good faith or failure to exercise ordinary care or limit the measure of damages for the lack or failure. Howe…

(1) In this chapter, the following definitions apply: (a) "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 instruc…

(1) In this chapter, unless the context otherwise requires: (a) "account" means any deposit or credit account with a bank and includes a demand, time, savings, passbook, share draft, or like account, other than an account evidenced by a certificate of deposit; (b) "afternoon" mea…

In this chapter, the following definitions apply: (1) "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 origin…

(1) In this chapter, the following definitions apply: (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, a…

In this chapter, unless the context otherwise requires: (1) "bank" means any person engaged in the business of banking, including a savings bank, savings and loan association, credit union, or trust company; (2) "depositary bank" means the first bank to take an item even though i…

(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 30-1-210. A receiving bank may fix a cutoff time or times on a funds-transfer business day for the receipt and …

A branch or separate office of a bank is a separate bank for the purpose of computing the time within which and determining the place at or to which action may be taken or notices or orders must be given under this chapter and under chapter 3.

(1) For the purpose of allowing time to process items, prove balances and make the necessary entries on its books to determine its position for the day, a bank may fix an afternoon hour of 2 p.m. or later as a cut-off hour for the handling of money and items and the making of ent…

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.

(1) Unless otherwise instructed, a collecting bank in a good faith effort to secure payment of a specific item drawn on a payor other than a bank and with or without the approval of any person involved may waive, modify, or extend time limits imposed or permitted by this code for…

(1) Except as provided in subsection (2), 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 Stat. 3728, 15 U.S.C. 1693, et seq. (2) This chapter applies to a funds transfer th…

(1) If an item states that it is "payable through" a bank identified in the item: (a) the item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item; and (b) the item may be presented for payment only by or through the bank. (2) If an …

(1) "Truncation agreement" means an agreement, clearinghouse rule, or federal reserve regulation or operating circular, providing that presentment of an item may be made by transmission of an image of an item or information describing the item ("presentment notice") rather than d…

An action to enforce an obligation, duty, or right arising under this chapter must be commenced within 3 years after the cause of action accrues.

"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 canceling a payment order is that of the customer or detecting error in the transmission or the conten…

(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 (subsections (3) and (4) of 30-4-211 and subsections (2) and (3) of 30-4-213), the bank with respect to the item is an agent or subagent o…

(1) A collecting bank must exercise ordinary care in: (a) presenting an item or sending it for presentment; (b) sending notice of dishonor or nonpayment or returning an item other than a documentary draft to the bank's transferor after learning that the item has not been paid or …

(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 payment order…

(1) If an accepted payment order is not, under 30-4A-202(1), an authorized order of a customer identified as sender, but is effective as an order of the customer pursuant to 30-4A-202(2), the following rules apply: (a) By express agreement evidenced by a record, the receiving ban…

Subject to the provisions of chapter 3 concerning conversion of instruments (30-3-419) and restrictive endorsements (30-3-205), 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 p…

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

(1) If a receiving bank accepts a payment order issued in the name of its customer as sender that is not authorized and not effective as the order of the customer under 30-4A-202 or not enforceable, in whole or in part, against the customer under 30-4A-203, the bank shall refund …