47-4A209. Acceptance of payment order
A. Subject to subsection D of this section, 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 of this section, a beneficiary's bank accepts a
payment order at the earliest of the following times:
1. When the bank:
(a) Pays the beneficiary as stated in section 47-4A405, subsection A or B; or
(b) Notifies the beneficiary of receipt of the order or that the account of the
beneficiary has been credited with respect to the order unless the notice indicates that
the bank is rejecting the order or that funds with respect to the order may not be
withdrawn or used until receipt of payment from the sender of the order;
2. When the bank receives payment of the entire amount of the sender's order
pursuant to section 47-4A403, subsection A, paragraph 1 or 2; or
3. The opening of the next funds-transfer business day of the bank following the
payment date of the order if, at that time, the amount of the sender's order is fully
covered by a withdrawable credit balance in an authorized account of the sender or the
bank has otherwise received full payment from the sender, unless the order was rejected
before that time or is rejected within one hour after that time or one hour after the
opening of the next business day of the sender following the payment date if that time is
later. If notice of rejection is received by the sender after the payment date and the
authorized account of the sender does not bear interest, the bank is obliged to pay
interest to the sender on the amount of the order for the number of days elapsing after
the payment date to the day the sender receives notice or learns that the order was not
accepted, counting that day as an elapsed day. If the withdrawable credit balance during
that period falls below the amount of the order, the amount of interest payable is
reduced accordingly.
C. Acceptance of a payment order cannot occur before the order is received by the
receiving bank. Acceptance does not occur under subsection B, paragraph 2 or 3 of this
section if the beneficiary of the payment order does not have an account with the
receiving bank, the account has been closed or the receiving bank is not permitted by law
to receive credits for the beneficiary's account.
D. A payment order issued to the originator's bank cannot be accepted until the
payment date if the bank is the beneficiary's bank, or the execution date if the bank is
not the beneficiary's bank. If the originator's bank executes the originator's payment
order before the execution date or pays the beneficiary of the originator's payment order
before the payment date and the payment order is subsequently canceled pursuant to
section 47-4A211, subsection B, the bank may recover from the beneficiary any payment
received to the extent allowed by the law governing mistake and restitution.
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