/* The UCC on Electronic Fund Transfers Follows. For comments, please see Article 4, since this section mirrors its predecessor. This act is in regard to commercial transfers, and consumer transfers are governed by the EFT laws and regulations of the FTC. */
ARTICLE 4 A
FUNDS TRANSFERS
PART 1. SUBJECT MATTER AND DEFINITIONS
Section
4A-101. Short Title.
4A-102. Subject Matter.
4A-103. Payment Order-Definitions.
4A-104. Funds Transfer-Definitions.
4A-105. Other Definitions.
4A-106. Time Payment Order Is Received.
4A-107. Federal Reserve Regulations and Operating Circulars.
4A-108. Exclusion of Consumer Transactions Governed by Federal
Law.
PART 2. ISSUE AND ACCEPTANCE OF PAYMENT ORDER
4A-201. Security Procedure.
4A-202. Authorized and Verified Payment Orders.
4A-203. Unenforceability of Certain Verified Payment Orders.
4A-204. Refund of Payment and Duty of Customer to Report With
Respect to Unauthorized Payment Order.
4A-205. Erroneous Payment Orders.
4A-206. Transmission of Payment Order Through Funds-Transfer or
Other Communication System.
4A-207. Misdescription of Beneficiary.
4A-208. Misdescription of Intermediary Bank or Beneficiary's
Bank.
4A-209. Acceptance of Payment Order.
4A-210. Rejection of Payment Order.
4A-211. Cancellation and Amendment of Payment Order.
4A-212. Liability and Duty of Receiving Bank Regarding Unaccepted
Payment Order.
PART 3. EXECUTION OF SENDER'S PAYMENT ORDER BY RECEIVING BANK
4A-301. Execution and Execution Date.
4A-302. Obligations of Receiving Bank in Execution of Payment
Order.
4A-303. Erroneous Execution of Payment Order.
4A-304. Duty of Sender to Report Erroneously Executed Payment
Order.
4A-305. Liability for Late or Improper Execution or Failure to
Execute Payment Order.
PART 4. PAYMENT
4A-401. Payment Date.
4A-402. Obligation of Sender to Pay Receiving Bank.
4A-403. Payment by Sender to Receiving Bank.
4A-404. Obligation of Beneficiary's Bank to Pay and Give Notice
to Beneficiary.
4A-405. Payment by Beneficiary's Bank to Beneficiary.
4A-406. Payment by Originator to Beneficiary; Discharge of
Underlying Obligation.
PART 5. MISCELLANEOUS PROVISIONS
4A-521. Variation by Agreement and Effect of Funds. Transfer
System Rule.
4A-502. Creditor Process Served on Receiving Bank; Set-off by
Beneficiary's Bank.
4A-503. Injunction or Restraining Order With Respect to Funds
Transfer.
4A-504 Order in Which Items and Payment Orders May Be Charged to
Account; Order of Withdrawals From Account.
4A-505. Preclusion of Objection to Debit of Customer's Account.
4A-506. Rate of Interest.
4A-507. Choice of Law.
ARTICLE 4A
FUNDS TRANSFERS
PART 1
SUBJECT MATTER AND DEFINITIONS
4A-101. Short Title.
This Article may be cited as Uniform Commercial Code-Funds
Transfers.
4A-102. Subject Matter.
Except as otherwise provided in Section 4A-108, this
Article applies to funds transfers defined in Section 4A-104.
4A-103. Payment Order-Definitions.
(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 a condition to payment
to the beneficiary other than time of payment
(ii) the receiving bank is to be reimbursed by debiting
an account of, or otherwise receiving payment from, the sender,
and
(iii) the instruction is transmitted by the sender
directly to the receiving bank or to an agent, funds-transfer
system, or communication system for transmittal to the receiving
bank.
(2) "Beneficiary" means the person to be paid by the
beneficiary's bank.
(3) "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 otherwise is to make
payment to the beneficiary if the order does not provide for
payment to an account.
(4) "Receiving bank" means the bank to which the sender's
instruction is addressed.
(5) "Sender" means the person giving the instruction to
the receiving bank.
(b) If an instruction complying with subsection (a)(1) is
to make more than one payment to a beneficiary, the instruction
is a separate payment order with respect to each payment.
(c) A payment order is issued when it is sent to the
receiving bank.
4A-l04. Funds Transfer-Definitions.
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 bank intended to carry out the originator's
payment order. A funds transfer is completed by acceptance by the
beneficiary's bank of a payment order for the benefit of the
beneficiary of the originator's payment order.
(b) "Intermediary bank" means a receiving bank other than
the originator's bank or the beneficiary's bank.
(c) "Originator" means the sender of the first payment
order in a funds transfer.
(d) "Originator's bank" means (i) the receiving bank to
which the payment order of the originator is issued if the
originator is not a bank, or (ii) the originator if the
originator is a bank.
4A-105. Other Definitions.
(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 authorized account if payment of a payment order
from that account is not inconsistent with a restriction on the
use of that account.
(2) "Bank" means a person engaged in the business of
banking and includes a savings bank, savings and loan
association, credit union, and trust company. A branch or
separate office of a bank is a separate bank for purposes of this
Article.
(3) "Customer" means a person, including a bank, having an
account with a bank or from whom a bank has agreed to receive
payment orders.
(4) "Funds-transfer business day" of a receiving bank
means the part of a day during which the receiving bank is open
for the receipt, processing, and transmittal of payment orders
and cancellations and amendments of payment orders.
(5) "Funds-transfer system" means a wire transfer network,
automated clearing-house, or other communication system of a
clearing house or other association of banks through which a
payment order by a bank may be transmitted to the bank to which
the order is addressed.
(6) "Good faith" means honesty in fact and the observance
of reasonable commercial standards of fair dealing.
(7) "Prove" with respect to a fact means to meet the
burden of establishing the fact (Section 1-201(S)).
(b) Other definitions applying to this Article and the
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