Title 11A — Uniform Commercial Code
0 chapters · 598 sections in this title.
11A V.I.C. § 4-215 Final payment of item by payor bank; when provisional debits and credits become final; when certain credits become available for withdrawal
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(a) An item is finally paid by a payor bank when the bank has first done any of the following:(1) paid the item in cash;(2) settled for the item without having a right to revoke the settlement under statute, clearing-house rule, or agreement; or(3) made a provisional settlement f…
11A V.I.C. § 4-216 Insolvency and preference
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(a) 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 presenting bank or the closed bank's cust…
11A V.I.C. § 4-301 Deferred posting; recovery of payment by return of items; time of dishonor; return of items by payor bank
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(a) 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 of the banking day of receipt, the payor bank may revoke the settlement and recover the settlement if, before it has made f…
11A V.I.C. § 4-302 Payor bank's responsibility for late return of item
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(a) If an item is presented to and received by a payor bank, the bank is accountable for the amount of:(1) a demand item, other than a documentary draft, whether properly payable or not, if the bank, in any case in which it is not also the depositary bank, retains the item beyond…
11A V.I.C. § 4-303 When items subject to notice, stop-payment order, legal process, or setoff; order in which items may be charged or certified
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(a) Any knowledge, notice, or stop-payment order received by, legal process served upon, or setoff exercised by a payor bank comes too late to terminate, suspend, or modify the bank's right or duty to pay an item or to charge its customer's account for the item if the knowledge, …
11A V.I.C. § 4-401 When bank may charge customer's account
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(a) A bank may charge against the account of a customer an item that is properly payable from the account even though the charge creates an overdraft. An item is properly payable if it is authorized by the customer and is in accordance with any agreement between the customer and …
11A V.I.C. § 4-402 Bank's liability to customer for wrongful dishonor; time of determining insufficiency of account
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(a) Except as otherwise provided in this Article, a payor bank wrongfully dishonors an item if it dishonors an item that is properly payable, but a bank may dishonor an item that would create an overdraft unless it has agreed to pay the overdraft. (b) A payor bank is liable to it…
11A V.I.C. § 4-403 Customer's right to stop payment; burden of proof of loss
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(a) 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 describing the item or account with reasonable certainty received at a time an…
11A V.I.C. § 4-404 Bank not obliged to pay check more than six months old
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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 account for a payment made thereafter in good faith.
11A V.I.C. § 4-405 Death or incompetence of customer
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(a) 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 the time the item is issued or its collection i…
11A V.I.C. § 4-406 Customer's duty to discover and report unauthorized signature or alteration
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(a) 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 provide information in the statement of account sufficient to allow the customer reasonab…
11A V.I.C. § 4-407 Payor bank's right to subrogation on improper payment
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(1) 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 prevent unjust enrichment and only to the extent necessary to …
11A V.I.C. § 4-501 Handling of documentary drafts; duty to send for presentment and to notify customer of dishonor
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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 been paid or accepted in due course, shall seasonably notify its customer of the fact even though it may have …
11A V.I.C. § 4-502 Presentment of “on arrival” drafts
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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 pay or accept because the goods have not arrive…
11A V.I.C. § 4-503 Responsibility of presenting bank for documents and goods; report of reasons for dishonor; referee in case of need
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(1) Unless otherwise instructed and except as provided in Article 5, a bank presenting a documentary draft:(1) must deliver the documents to the drawee on acceptance of the draft if it is payable more than three days after presentment; otherwise, only on payment; and(2) upon dish…
11A V.I.C. § 4-504 Privilege of presenting bank to deal with goods; security interest for expenses
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(a) 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 otherwise deal with the goods in any reasonable manner. (b) For its reasonable expenses incurred…
11A V.I.C. § 4A-101 Short title
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This Article may be cited as Uniform Commercial Code—Funds Transfers.
11A V.I.C. § 4A-102 Subject matter
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Except as otherwise provided in Section 4A-108, this Article applies to funds transfers defined in Section 4A-104.
11A V.I.C. § 4A-103 Payment order-definitions
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(a) In this Article:(1) “Payment order” means an instruction of a sender to a receiving bank, transmitted orally, electronically, or in writing, to pay, or to cause another bank to pay, a fixed or determinable amount of money to a beneficiary if:(i) the instruction does not state…
11A V.I.C. § 4A-104 Funds transfer-definitions
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(a) In this Article:(a) “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 bank or an intermediary…
11A V.I.C. § 4A-105 Other definitions
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(a) In this Article:(1) “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, any account of the customer is an a…
11A V.I.C. § 4A-106 Time payment order is received
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(a) 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 1–201(27). A receiving bank may fix a cut-off time or times on a funds-transfer business day for the r…
11A V.I.C. § 4A-107 Federal reserve regulations and operating circulars
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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 Article to the extent of the inconsistency.
11A V.I.C. § 4A-108 Exclusion of consumer transactions governed by federal law
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This Article 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.) as amended from time to time.
11A V.I.C. § 4A-201 Security procedure
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“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 of the customer, or (ii) detecting error in the transmission or…
11A V.I.C. § 4A-202 Authorized and verified payment orders
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(a) 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. (b) If a bank and its customer have agreed that the authenticity of payment order…
11A V.I.C. § 4A-203 Unenforceability of certain verified payment orders
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(a) If an accepted payment order is not, under Section 4A-202(a), an authorized order of a customer identified as sender, but is effective as an order of the customer pursuant to Section 4A-202(b), the following rules apply:(1) By express written agreement, the receiving bank may…
11A V.I.C. § 4A-204 Refund of payment and duty of customer to report with respect to unauthorized payment order
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(a) If a receiving bank accepts a payment order issued in the name of its customer as sender which is (i) not authorized and not effective as the order of the customer under Section 4A-202, or (ii) not enforceable, in whole or in part, against the customer under Section 4A-203, t…
11A V.I.C. § 4A-205 Erroneous payment orders
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(a) 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 sender, (ii) erroneously instructed payment in an amount greater than the amo…
11A V.I.C. § 4A-206 Transmission of payment order through funds-transfer or other communication system
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(a) 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 to be an agent of the sender for the purpose of transmitting the payment order to the bank. I…
11A V.I.C. § 4A-207 Misdescription of beneficiary
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(a) Subject to subsection (b), 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 rights as a beneficiary of the order and …
11A V.I.C. § 4A-208 Misdescription of intermediary bank or beneficiary's bank
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(a) This subsection applies to a payment order identifying an intermediary bank or the beneficiary's bank only by an identifying number.(1) The receiving bank may rely on the number as the proper identification of the intermediary or beneficiary's bank and need not determine whet…
11A V.I.C. § 4A-209 Acceptance of payment order
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(a) Subject to subsection (d), a receiving bank other than the beneficiary's bank accepts a payment order when it executes the order. (b) Subject to subsections (c) and (d), a beneficiary's bank accepts a payment order at the earliest of the following times:(1) when the bank (i) …
11A V.I.C. § 4A-210 Rejection of payment order
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(a) 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 and is sufficient if it indicates that the receiving bank is rejecting the order…
11A V.I.C. § 4A-211 Cancellation and amendment of payment order
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(a) 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. If a security procedure is in effect between the sender and the receiving bank, the communication is not effective…
11A V.I.C. § 4A-212 Liability and duty of receiving bank regarding unaccepted payment order
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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 provided in the agreement or in this Article, but does not otherwise have any duty to accept a payment order or, bef…
11A V.I.C. § 4A-301 Execution and execution date
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(a) 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 executed. (b) “Execution date” of a payment order …
11A V.I.C. § 4A-302 Obligations of receiving bank in execution of payment order
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(a) Except as provided in subsections (b) through (d), if the receiving bank accepts a payment order pursuant to Section 4A-209(a), the bank has the following obligations in executing the order:(1) The receiving bank is obliged to issue, on the execution date, a payment order com…
11A V.I.C. § 4A-303 Erroneous execution of payment order
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(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 then issues a duplicate order, is entitled to paymen…
11A V.I.C. § 4A-304 Duty of sender to report erroneously executed payment order
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If the sender of a payment order that is erroneously executed as stated in Section 4A-303 receives notification from the receiving bank that the order was executed or that the sender's account was debited with respect to the order, the sender has a duty to exercise ordinary care …
11A V.I.C. § 4A-305 Liability for late or improper execution or failure to execute payment order
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(a) If a funds transfer is completed but execution of a payment order by the receiving bank in breach of Section 4A-302 results in delay in payment to the beneficiary, the bank is obliged to pay interest to either the originator or the beneficiary of the funds transfer for the pe…
11A V.I.C. § 4A-401 Payment date
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“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 received by the beneficiary's …
11A V.I.C. § 4A-402 Obligation of sender to pay receiving bank
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(a) This section is subject to Sections 4A-205 and 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 order, but payment is not due until the payment date of the or…
11A V.I.C. § 4A-403 Payment by sender to receiving bank
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(a) Payment of the sender's obligation under Section 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 Federal Reserve Bank or through a funds-transfer syste…
11A V.I.C. § 4A-404 Obligation of beneficiary's bank to pay and give notice to beneficiary
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(a) Subject to Sections 4A-211(e), 4A-405(d), and 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 the order. Payment is due on the payment date of the order, but if acceptance occurs on the payme…
11A V.I.C. § 4A-405 Payment by beneficiary's bank to beneficiary
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(a) If the beneficiary's bank credits an account of the beneficiary of a payment order, payment of the bank's obligation under Section 4A-404(a) occurs when and to the extent (i) the beneficiary is notified of the right to withdraw the credit, (ii) the bank lawfully applies the c…
11A V.I.C. § 4A-406 Payment by originator to beneficiary; discharge of underlying obligation
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(a) Subject to Sections 4A-211(e), 4A-405(d), and 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 for the benefit of the beneficiary is accepted by the beneficiary's bank in the funds transfer an…
11A V.I.C. § 4A-501 Variation by agreement and effect of funds-transfer system rule
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(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 of an association of banks (i) governing transmission of payment orders by m…
11A V.I.C. § 4A-502 Creditor process served on receiving bank; setoff by beneficiary's bank
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(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 respect to an account. (b) This subsection applies to creditor process with respect t…
11A V.I.C. § 4A-503 Injunction or restraining order with respect to funds transfer
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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 order of the originator, or (iii) the beneficiary's bank from releasing funds …