Title 70A, Title 70A: Uniform Commercial Code

70A-4a-105. Other definitions. (1) As used in this chapter: "Authorized account" means a deposit account of a customer in a bank designated by the customer as a source of payment orders issued by the customer to the bank. If a customer does not so designate an account, any accoun…

70A-4a-105. Other definitions. (1) In this chapter: "Authorized account" means a deposit account of a customer in a bank designated by the customer as a source of payment orders issued by the customer to the bank. If a customer does not so designate an account, any account of the…

70A-4a-106. Time payment order is received. (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. A receiving bank may fix a cutoff time or times on a funds…

70A-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 provision of this chapter to the extent of the inconsistency.

70A-4a-108. Relationship to Electronic Fund Transfer Act. (1) As used in this section, "Electronic Fund Transfer Act" means the Electronic Fund Transfer Act of 1978, Title XX, Public Law 95-630, 92 Stat. 3728, 15 U.S.C. Sec. 1693 et seq., as amended. (2) Except as provided in Sub…

70A-4a-201. Security procedure. (1) "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 e…

70A-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 under the law of agency. (2) If a bank and its custome…

70A-4a-203. Unenforceability of certain verified payment orders. (1) This section applies to an accepted payment order that, pursuant to Subsection, is not an authorized order of a customer identified as sender, but which is effective as the order of the customer pursuant to Subs…

70A-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 its customer as sender which is not authorized and not effective as the order of the customer under Secti…

70A-4a-205. Erroneous payment orders. (1) The rules listed in Subsectionsthroughapply if an accepted payment order was transmitted pursuant to a security procedure for the detection of error and payment order: (2) (5) erroneously instructed payment to a beneficiary not intended b…

70A-4a-206. Transmission of payment order through funds transfer or other communication system. 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 t…

70A-4a-207. Misdescription of beneficiary. (1) Subject to Subsection, 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 ri…

70A-4a-208. Misdescription of intermediary bank or beneficiary's bank. (1) This subsection applies to a payment order identifying an intermediary bank or beneficiary's bank by an identifying number. The receiving bank may rely on the number as the proper identification of the int…

70A-4a-209. Acceptance of payment order. (1) Subject to Subsection, a receiving bank other than the beneficiary's bank accepts a payment order when it executes the order. (4) (2) Subject to Subsectionsand, a beneficiary's bank accepts a payment order at the earliest of the follow…

70A-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 or in a record. A notice of rejection need not use any particular words and is sufficient if it indicates that the receiving ban…

70A-4a-211. Cancellation and amendment of payment order. (1) A communication of the sender of a payment order canceling 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 …

70A-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 is liable for breach of the agreement to the extent as provided in the agreement or…

70A-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 bank can be accepted but cannot be exec…

70A-4a-302. Obligations of receiving bank in execution of payment order. (1) Except as provided in Subsectionsthrough, if the receiving bank accepts a payment order pursuant to Subsection, the bank has the following obligations in executing the order: (2) (4) 70A-4a-209(1) The re…

70A-4a-303. Erroneous execution of payment order. (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…

70A-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 Sectionreceives notification from the receiving bank that the order was executed or that the sender's account was debited with respe…

70A-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 of Sectionresults in delay in payment to the beneficiary, the bank is obliged to pay int…

70A-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 rece…

70A-4a-402. Obligation of sender to pay receiving bank. (1) This section is subject to Section. 70A-4a-205 (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 pay…

70A-4a-403. Payment by sender to receiving bank. (1) Payment of the sender's obligation under Sectionto pay the receiving bank occurs as follows: 70A-4a-402 If the sender is a bank, payment occurs when the receiving bank receives final settlement of the obligation through a Feder…

70A-4a-404. Obligation of beneficiary's bank to pay and give notice to beneficiary. (1) Subject to Subsectionand Subsectionsand, 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 …

70A-4a-405. Payment by beneficiary's bank to beneficiary. (1) If a beneficiary's bank credits an account of the beneficiary of a payment order, payment of the bank's obligation under Subsectionoccurs when and to the extent: 70A-4a-404(1) the beneficiary is notified of the right t…

70A-4a-406. Payment by originator to beneficiary -- Discharge of underlying obligation. (1) Subject to Subsectionand Subsectionsand, the originator of a funds transfer pays the beneficiary of the originator's payment order: 70A-4a-211(5) 70A-4a-405(4) (5) at the time a payment or…

70A-4a-501. Variation by agreement and effect of funds transfer system rule. (1) Except as otherwise provided in this chapter, 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 …

70A-4a-502. Creditor process served on receiving bank -- Setoff by beneficiary's bank. (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 wit…

70A-4a-503. Injunction or restraining order with respect to funds transfer. (1) For proper cause and in compliance with applicable law, a court may restrain: a person from issuing a payment order to initiate a funds transfer; an originator's bank from executing the payment order …

70A-4a-504. Order in which items and payment orders may be charged to an account -- Order of withdrawals from an account. (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'…

70A-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 …

70A-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: by agreement of the sender and receiving bank; or if the payment order is transmitted th…

70A-4a-507. Choice of law. (1) The following rules apply unless the affected parties otherwise agree or Subsectionapplies: (3) 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 receivin…