8.4A-403 - A-403. Payment by sender to receiving bank.
§ 8.4A-403. Payment by sender to receiving bank.
(a) Payment of the sender's obligation under § 8.4A-402 to pay the receivingbank occurs as follows:
(1) If the sender is a bank, payment occurs when the receiving bank receivesfinal settlement of the obligation through a Federal Reserve Bank or througha funds-transfer system.
(2) If the sender is a bank and the sender (i) credited an account of thereceiving bank with the sender, or (ii) caused an account of the receivingbank in another bank to be credited, payment occurs when the credit iswithdrawn or, if not withdrawn, at midnight of the day on which the credit iswithdrawable and the receiving bank learns of that fact.
(3) If the receiving bank debits an account of the sender with the receivingbank, payment occurs when the debit is made to the extent the debit iscovered by a withdrawable credit balance in the account.
(b) If the sender and receiving bank are members of a funds-transfer systemthat nets obligations multilaterally among participants, the receiving bankreceives final settlement when settlement is complete in accordance with therules of the system. The obligation of the sender to pay the amount of apayment order transmitted through the funds-transfer system may be satisfied,to the extent permitted by the rules of the system, by setting off andapplying against the sender's obligation the right of the sender to receivepayment from the receiving bank of the amount of any other payment ordertransmitted to the sender by the receiving bank through the funds-transfersystem. The aggregate balance of obligations owed by each sender to eachreceiving bank in the funds-transfer system may be satisfied, to the extentpermitted by the rules of the system, by setting off and applying againstthat balance the aggregate balance of obligations owed to the sender by othermembers of the system. The aggregate balance is determined after the rightof setoff stated in the second sentence of this subsection has been exercised.
(c) If two banks transmit payment orders to each other under an agreementthat settlement of the obligations of each bank to the other under § 8.4A-402will be made at the end of the day or other period, the total amount owedwith respect to all orders transmitted by one bank shall be set off againstthe total amount owed with respect to all orders transmitted by the otherbank. To the extent of the setoff, each bank has made payment to the other.
(d) In a case not covered by subsection (a) of this section, the time whenpayment of the sender's obligation under subsection (b) or (c) of § 8.4A-402occurs is governed by applicable principles of law that determine when anobligation is satisfied.
(1990, c. 9.)