State Codes and Statutes
Statutes > North-carolina > Chapter_25 > GS_25-4A-506§25‑4A‑506. Rate of interest.
(a) If, under thisArticle, a receiving bank is obliged to pay interest with respect to a paymentorder issued to the bank, the amount payable may be determined (i) by agreementof the sender and receiving bank, or (ii) by a funds‑transfer system ruleif the payment order is transmitted through a funds‑transfer system.
(b) If the amount ofinterest is not determined by an agreement or rule as stated in subsection (a),the amount is calculated by multiplying the applicable federal funds rate bythe amount on which interest is payable, and then multiplying the product bythe number of days for which interest is payable. The applicable federal fundsrate is the average of the federal funds rates published by the Federal ReserveBank of New York for each of the days for which interest is payable divided by360. The federal funds rate for any day on which a published rate is notavailable is the same as the published rate for the next preceding day forwhich there is a published rate. If a receiving bank that accepted a paymentorder is required to refund payment to the sender of the order because thefunds transfer was not completed, but the failure to complete was not due toany fault by the bank, the interest payable is reduced by a percentage equal tothe reserve requirement on deposits of the receiving bank. (1993,c. 157, s. 1.)
