Title 70A, Title 70A: Uniform Commercial Code

70A-4-207. Transfer warranties. (1) A customer or collecting bank that transfers an item and receives a settlement or other consideration warrants to the transferee and to any subsequent collecting bank that: the warrantor is a person entitled to enforce the item; all signatures …

70A-4-208. Presentment warranties. (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…

70A-4-209. Encoding and retention warranties. (1) A person who encodes information on or with respect to an item after issue warrants to any subsequent collecting bank and to the payor bank or other payor that the information is correctly encoded. If the customer of a depositary …

70A-4-210. Security interest of collecting bank in items, accompanying documents, and proceeds. (1) A collecting bank has a security interest in an item and any accompanying documents or the proceeds of either: in case of an item deposited in an account, to the extent to which cr…

70A-4-211. When bank gives value for purposes of holder in due course. For purposes of determining its status as a holder in due course, a bank has given value to the extent that it has a security interest in an item if the bank otherwise complies with the requirements of Section…

70A-4-212. Presentment of notice of item not payable by, through, or at bank -- Liability of drawer or indorser. (1) Unless otherwise instructed, a collecting bank may present an item not payable by, through, or at a bank by sending to the party to accept or pay a written notice …

70A-4-213. Medium and time of settlement by bank. (1) With respect to settlement by a bank, the medium and time of settlement may be prescribed by Federal Reserve regulations or circulars, clearinghouse rules, and the like, or agreement. In the absence of such prescription: the m…

70A-4-214. Right of charge-back or refund -- Liability of collecting bank -- Return of item. (1) If a collecting bank has made provisional settlement with its customer for an item and fails by reason of dishonor, suspension of payments by a bank, or otherwise to receive settlemen…

70A-4-215. Final payment of item by payor bank -- When provisional debits and credits become final -- When certain credits become available for withdrawal. (1) An item is finally paid by a payor bank when the bank has first done any of the following: paid the item in cash; settle…

70A-4-216. Insolvency and preference. (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 pre…

70A-4-301. Deferred posting -- Recovery of payment by return of items -- Time of dishonor -- Return of item by payor bank. (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…

70A-4-302. Payor bank's responsibility for late return of item. (1) If an item is presented to and received by a payor bank, the bank is accountable for the amount of: a demand item, other than a documentary draft, whether properly payable or not, if the bank, in any case in whic…

70A-4-303. When items subject to notice, stop payment order, legal process or setoff -- Order in which items may be charged or certified. (1) Any knowledge, notice, or stop-payment order received by, legal process served upon, or setoff exercised by a payor bank, comes too late t…

70A-4-401. When bank may charge customer's account. (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 ac…

70A-4-402. Bank's liability to customer for wrongful dishonor -- Time of determining insufficiency of account. (1) Except as otherwise provided in this chapter, a payor bank wrongfully dishonors an item if it dishonors an item that is properly payable, but a bank may dishonor an …

70A-4-403. Customer's right to stop-payment -- Burden of proof of loss. (1) A customer or any person authorized to draw on the account if there is more than one person, may stop payment of any item drawn on the customer's account or close the account by an order to the bank descr…

70A-4-404. Bank not obligated to pay check more than six months old. 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 six months after its date, but it may charge its customer's accoun…

70A-4-405. Death or incompetence of customer. (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 th…

70A-4-406. Customer's duty to discover and report unauthorized signature or alteration. (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 p…

70A-4-407. Payor bank's right to subrogation on improper payment. 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 …

70A-4-501. Handling of documentary drafts -- Duty to send for presentment and to notify customer of dishonor. A bank that takes a documentary draft for collection shall present or send the draft and accompanying documents for presentment and, upon learning that the draft has not …

70A-4-502. Presentment of "on arrival" drafts. If 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 …

70A-4-503. Responsibility of presenting bank for documents and goods -- Report of reasons for dishonor -- Referee in case of need. (1) Unless otherwise instructed and except as provided in, a bank presenting a documentary draft: Title 70A, Chapter 5, Uniform Commercial Code - Let…

70A-4-504. Privilege of presenting bank to deal with goods -- Security interest for expenses. (1) A presenting bank that, following the dishonor of a documentary draft, has seasonably requested instructions but does not receive them within a reasonable time may store, sell, or ot…

70A-4a-101. Short title. This chapter is known as Uniform Commercial Code -- Funds Transfers.

70A-4a-102. Subject matter. Except as otherwise provided in Section, this chapter applies to funds transfers defined in Section.

70A-4a-103. Payment order -- Definitions. (1) "Beneficiary" means the person to be paid by the beneficiary's bank. (2) "Beneficiary's bank" means the bank identified in a payment order in which an account of the beneficiary is to be credited pursuant to the order or which otherwi…

70A-4a-104. Funds transfer -- Definitions. (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 originator's …

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…