§ 6A-4.1-209 - Acceptance of payment order.
SECTION 6A-4.1-209
§ 6A-4.1-209 Acceptance of payment order.– (a) Subject to subsection (d), a receiving bank other than the beneficiary'sbank accepts a payment order when it executes the order.
(b) Subject to subsections (c) and (d), a beneficiary's bankaccepts a payment order at the earliest of the following times:
(1) When the bank (i) pays the beneficiary as stated in§ 6A-4.1-405(a) or 6A-4.1-405(b), or (ii) notifies the beneficiary ofreceipt of the order or that the account of the beneficiary has been creditedwith respect to the order unless the notice indicates that the bank isrejecting the order or that funds with respect to the order may not bewithdrawn or used until receipt of payment from the sender of the order;
(2) When the bank receives payment of the entire amount ofthe sender's order pursuant to § 6A-4.1-403(a)(1) or 6A-4.1-403(a)(2); or
(3) The opening of the next funds transfer business day ofthe bank following the payment date of the order if, at that time, the amountof the sender's order is fully covered by a withdrawable credit balance in anauthorized account of the sender or the bank has otherwise received fullpayment from the sender, unless the order was rejected before that time or isrejected within (i) one hour after that time, (ii) one hour after the openingof the next business day of the sender following the payment date if that timeis later. If notice of rejection is received by the sender after the paymentdate and the authorized account of the sender does not bear interest, the bankis obliged to pay interest to the sender on the amount of the order for thenumber of days elapsing after the payment date to the day the sender receivesnotice or learns that the order was not accepted, counting that day as anelapsed day. If the withdrawable credit balance during that period falls belowthe amount of the order, the amount of interest payable is reduced accordingly.
(c) Acceptance of a payment order cannot occur before theorder is received by the receiving bank. Acceptance does not occur undersubsection (b)(2) or (b)(3) if the beneficiary of the payment order does nothave an account with the receiving bank, the account has been closed, or thereceiving bank is not permitted by law to receive credits for the beneficiary'saccount.
(d) A payment order issued to the originator's bank cannot beaccepted until the payment date if the bank is the beneficiary's bank, or theexecution date if the bank is not the beneficiary's bank. If the originator'sbank executes the originator's payment order before the execution date or paysthe beneficiary of the originator's payment order before the payment date andthe payment order is subsequently canceled pursuant to § 6A-4.1-211(b),the bank may recover from the beneficiary any payment received to the extentallowed by the law governing mistake and restitution.