§490:4A-506  Rate of interest.  (a)  If,
under this article, a receiving bank is obliged to pay interest with respect to
a payment order issued to the bank, the amount payable may be determined (i) by
agreement of the sender and receiving bank, or (ii) 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. [L 1991, c 41, pt of
§1]