47-4A506. Rate of interest
A. If, under this chapter, a receiving bank is obliged to pay interest with respect
to a payment order issued to the bank, the amount payable may be determined:
1. By agreement of the sender and receiving bank; or
2. By a funds-transfer system rule if the payment order is transmitted through a
funds-transfer system.
B. If the amount of interest is not determined by an agreement or rule as stated in
subsection A, the amount is calculated by multiplying the applicable federal funds rate
by the amount on which interest is payable, and then multiplying the product by the
number of days for which interest is payable. The applicable federal funds rate is the
average of the federal funds rates published by the federal reserve bank of New York for
each of the days for which interest is payable divided by three hundred sixty. The
federal funds rate for any day on which a published rate is not available is the same as
the published rate for the next preceding day for which there is a published rate. If a
receiving bank that accepted a payment order is required to refund payment to the sender
of the order because the funds transfer was not completed, but the failure to complete
was not due to any fault by the bank, the interest payable is reduced by a percentage
equal to the reserve requirement on deposits of the receiving bank.
|