Title 12A, Title 12A: COMMERCIAL TRANSACTIONS

12A:4A-105. Other definitions 12A:4A-105. Other definitions. (1) In this chapter: (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 no…

12A:4A-106. Time payment order is received 12A:4A-106. Time payment order is received. (1) 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 section 12A:1-201(27). …

12A:4A-107. Federal Reserve regulations and operating circulars 12A: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 pro…

12A:4A-108 Relationship to electronic fund transfer act. 12A:4A-108. Relationship to 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…

12A:4A-201. Security procedure 12A: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 …

12A:4A-202. Authorized and verified payment orders 12A:4A-202. Authorized and verified payment orders. (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 und…

12A:4A-203. Unenforceability of certain verified payment orders 12A:4A-203. Unenforceability of certain verified payment orders. (1) If an accepted payment order is not, under section 12A:4A-202(1), an authorized order of a customer identified as sender, but is effective as an or…

12A:4A-204. Refund of payment and duty of customer to report with respect to unauthorized payment order 12A:4A-204. Refund of payment and duty of customer to report with respect to unauthorized payment order. (1) If a receiving bank accepts a payment order issued in the name of i…

12A:4A-205. Erroneous payment orders 12A:4A-205. Erroneous payment orders. (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 se…

12A:4A-206. Transmission of payment order through funds-transfer or other communication system 12A:4A-206. Transmission of payment order through funds-transfer or other communication system. (1) If a payment order addressed to a receiving bank is transmitted to a funds-transfer s…

12A:4A-207. Misdescription of beneficiary 12A:4A-207. Misdescription of beneficiary. (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 unid…

12A:4A-208. Misdescription of intermediary bank or beneficiary's bank 12A:4A-208. Misdescription of intermediary bank or beneficiary's bank. (1) This subsection applies to a payment order identifying an intermediary bank or the beneficiary's bank only by an identifying number. (a…

12A:4A-209. Acceptance of payment order 12A:4A-209. Acceptance of payment order. (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 acce…

12A:4A-210. Rejection of payment order 12A:4A-210. Rejection of payment order. (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 a…

12A:4A-211. Cancellation and amendment of payment order 12A:4A-211. Cancellation and amendment of payment order. (1) A communication of the sender of a payment order cancelling or amending the order may be transmitted to the receiving bank orally, electronically, or in writing. I…

12A:4A-212. Liability and duty of receiving bank regarding unaccepted payment order 12A: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…

12A:4A-301. Execution and execution date 12A:4A-301. Execution and execution date. (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 ba…

12A:4A-302. Obligations of receiving bank in execution of payment order 12A:4A-302. Obligations of receiving bank in execution of payment order. (1) Except as provided in subsections (2) through (4), if the receiving bank accepts a payment order pursuant to section 12A:4A-209(1),…

12A:4A-303. Erroneous execution of payment order 12A:4A-303. Erroneous execution of payment order. (1) 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 paymen…

12A:4A-304. Duty of sender to report erroneously executed payment order 12A: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 12A:4A-303 receives notification from the receiving …

12A:4A-305. Liability for late or improper execution or failure to execute payment order 12A:4A-305. Liability for late or improper execution or failure to execute payment order. (1) If a funds transfer is completed but execution of a payment order by the receiving bank in breach…

12A:4A-401. Payment date 12A: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 …

12A:4A-402. Obligation of sender to pay receiving bank 12A:4A-402. Obligation of sender to pay receiving bank. (1) This section is subject to sections 12A:4A-205 and 12A:4A-207. (2) With respect to a payment order issued to the beneficiary's bank, acceptance of the order by the b…

12A:4A-403. Payment by sender to receiving bank 12A:4A-403. Payment by sender to receiving bank. (1) Payment of the sender's obligation under section 12A:4A-402 to pay the receiving bank occurs as follows: (a) If the sender is a bank, payment occurs when the receiving bank receiv…

12A:4A-404. Obligation of beneficiary's bank to pay and give notice to beneficiary 12A:4A-404. Obligation of beneficiary's bank to pay and give notice to beneficiary. (1) Subject to sections 12A:4A-211(5), 12A:4A-405(4), and 12A:4A-405(5), if a beneficiary's bank accepts a paymen…

12A:4A-405. Payment by beneficiary's bank to beneficiary 12A:4A-405. Payment by beneficiary's bank to beneficiary. (1) If the beneficiary's bank credits an account of the beneficiary of a payment order, payment of the bank's obligation under section 12A:4A-404(1) occurs when and …

12A:4A-406. Payment by originator to beneficiary; discharge of underlying obligation 12A:4A-406. Payment by originator to beneficiary; discharge of underlying obligation. (1) Subject to sections 12A:4A-211(5), 12A:4A-405(4), and 12A:4A-405(5), the originator of a funds transfer p…

12A:4A-501. Variation by agreement and effect of funds-transfer system rule 12A:4A-501. Variation by agreement and effect of funds-transfer system rule. (1) Except as otherwise provided in this chapter, the rights and obligations of a party to a funds transfer may be varied by ag…

12A:4A-502. Creditor process served on receiving bank; set-off by beneficiary's bank 12A:4A-502. Creditor process served on receiving bank; set-off by beneficiary's bank. (1) As used in this section, "creditor process" means levy, attachment, garnishment, notice of lien, sequestr…

12A:4A-503. Injunction or restraining order with respect to funds transfer 12A: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 initiat…

12A:4A-504. Order in which items and payment orders may be charged to account; order of withdrawals from account 12A:4A-504. Order in which items and payment orders may be charged to account; order of withdrawals from account. (1) If a receiving bank has received more than one pa…

12A:4A-505. Preclusion of objection to debit of customer's account 12A: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 accep…

12A:4A-506. Rate of interest 12A:4A-506. Rate of interest. (1) 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) b…

12A:4A-507. Choice of law 12A:4A-507. Choice of law. (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 jur…