Creditor process served on receiving bank--setoff by beneficiary'sbank.
400.4A-502. (a) As used in this section, "creditor process"means levy, attachment, garnishment, notice of lien,sequestration, or similar process issued by or on behalf of acreditor or other claimant with respect to an account.
(b) This subsection applies to creditor process withrespect to an authorized account of the sender of a payment orderif the creditor process is served on the receiving bank. For thepurpose of determining rights with respect to the creditorprocess, if the receiving bank accepts the payment order thebalance in the authorized account is deemed to be reduced by theamount of the payment order to the extent the bank did nototherwise receive payment of the order, unless the creditorprocess is served at a time and in a manner affording the bank areasonable opportunity to act on it before the bank accepts thepayment order.
(c) If a beneficiary's bank has received a payment orderfor payment to the beneficiary's account in the bank, thefollowing rules apply:
(1) The bank may credit the beneficiary's account. Theamount credited may be set off against an obligation owed by thebeneficiary to the bank or may be applied to satisfy creditorprocess served on the bank with respect to the account.
(2) The bank may credit the beneficiary's account and allowwithdrawal of the amount credited unless creditor process withrespect to the account is served at a time and in a manneraffording the bank a reasonable opportunity to act to preventwithdrawal.
(3) If creditor process with respect to the beneficiary'saccount has been served and the bank has had a reasonableopportunity to act on it, the bank may not reject the paymentorder except for a reason unrelated to the service of process.
(d) Creditor process with respect to a payment by theoriginator to the beneficiary pursuant to a funds transfer may beserved only on the beneficiary's bank with respect to the debtowed by that bank to the beneficiary. Any other bank served withthe creditor process is not obliged to act with respect to theprocess.
Creditor process served on receiving bank--setoff by beneficiary'sbank.
400.4A-502. (a) As used in this section, "creditor process"means levy, attachment, garnishment, notice of lien,sequestration, or similar process issued by or on behalf of acreditor or other claimant with respect to an account.
(b) This subsection applies to creditor process withrespect to an authorized account of the sender of a payment orderif the creditor process is served on the receiving bank. For thepurpose of determining rights with respect to the creditorprocess, if the receiving bank accepts the payment order thebalance in the authorized account is deemed to be reduced by theamount of the payment order to the extent the bank did nototherwise receive payment of the order, unless the creditorprocess is served at a time and in a manner affording the bank areasonable opportunity to act on it before the bank accepts thepayment order.
(c) If a beneficiary's bank has received a payment orderfor payment to the beneficiary's account in the bank, thefollowing rules apply:
(1) The bank may credit the beneficiary's account. Theamount credited may be set off against an obligation owed by thebeneficiary to the bank or may be applied to satisfy creditorprocess served on the bank with respect to the account.
(2) The bank may credit the beneficiary's account and allowwithdrawal of the amount credited unless creditor process withrespect to the account is served at a time and in a manneraffording the bank a reasonable opportunity to act to preventwithdrawal.
(3) If creditor process with respect to the beneficiary'saccount has been served and the bank has had a reasonableopportunity to act on it, the bank may not reject the paymentorder except for a reason unrelated to the service of process.
(d) Creditor process with respect to a payment by theoriginator to the beneficiary pursuant to a funds transfer may beserved only on the beneficiary's bank with respect to the debtowed by that bank to the beneficiary. Any other bank served withthe creditor process is not obliged to act with respect to theprocess.
Creditor process served on receiving bank--setoff by beneficiary'sbank.
400.4A-502. (a) As used in this section, "creditor process"means levy, attachment, garnishment, notice of lien,sequestration, or similar process issued by or on behalf of acreditor or other claimant with respect to an account.
(b) This subsection applies to creditor process withrespect to an authorized account of the sender of a payment orderif the creditor process is served on the receiving bank. For thepurpose of determining rights with respect to the creditorprocess, if the receiving bank accepts the payment order thebalance in the authorized account is deemed to be reduced by theamount of the payment order to the extent the bank did nototherwise receive payment of the order, unless the creditorprocess is served at a time and in a manner affording the bank areasonable opportunity to act on it before the bank accepts thepayment order.
(c) If a beneficiary's bank has received a payment orderfor payment to the beneficiary's account in the bank, thefollowing rules apply:
(1) The bank may credit the beneficiary's account. Theamount credited may be set off against an obligation owed by thebeneficiary to the bank or may be applied to satisfy creditorprocess served on the bank with respect to the account.
(2) The bank may credit the beneficiary's account and allowwithdrawal of the amount credited unless creditor process withrespect to the account is served at a time and in a manneraffording the bank a reasonable opportunity to act to preventwithdrawal.
(3) If creditor process with respect to the beneficiary'saccount has been served and the bank has had a reasonableopportunity to act on it, the bank may not reject the paymentorder except for a reason unrelated to the service of process.
(d) Creditor process with respect to a payment by theoriginator to the beneficiary pursuant to a funds transfer may beserved only on the beneficiary's bank with respect to the debtowed by that bank to the beneficiary. Any other bank served withthe creditor process is not obliged to act with respect to theprocess.
