§490:4A-210  Rejection of payment order. 
(a)  A payment order is rejected by the receiving bank by a notice of rejection
transmitted to the sender orally, electronically, or in writing.  A notice of
rejection need not use any particular words and is sufficient if it indicates
that the receiving bank is rejecting the order or will not execute or pay the
order.  Rejection is effective when the notice is given if transmission is by a
means that is reasonable in the circumstances.  If notice of rejection is given
by a means that is not reasonable, rejection is effective when the notice is
received.  If an agreement of the sender and receiving bank establishes the
means to be used to reject a payment order, (i) any means complying with the
agreement is reasonable and (ii) any means not complying is not reasonable
unless no significant delay in receipt of the notice resulted from the use of
the noncomplying means.



(b)  This subsection applies if a receiving
bank other than the beneficiary's bank fails to execute a payment order despite
the existence on the execution date of a withdrawable credit balance in an
authorized account of the sender sufficient to cover the order.  If the sender
does not receive notice of rejection of the order on the execution 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 execution date to the earlier of the day the order is
canceled pursuant to section 490:4A-211(d) or the day the sender receives
notice or learns that the order was not executed, counting the final day of the
period as an elapsed day.  If the withdrawable credit balance during that
period falls below the amount of the order, the amount of interest is reduced
accordingly.



(c)  If a receiving bank suspends payments, all
unaccepted payment orders issued to it are deemed rejected at the time the bank
suspends payments.



(d)  Acceptance of a payment order precludes a
later rejection of the order.  Rejection of a payment order precludes a later
acceptance of the order. [L 1991, c 41, pt of §1]