reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4 - Bank Deposits and Collections (440.4101...440.4504) › 174-1962-4-4 - Part 4 Relationship Between Payor Bank and Its Customer (440.4401...440.4407) › Section 440.4404 - Payment of Checks More Than 6 Months Old.

440.4404 Payment of checks more than 6 months old.
Sec. 4404.
A bank is under no obligation to a customer having a checking account to pay a check, other than a certified check, which is presented more than 6 months after its date, but it may charge its customer's account for a payment made thereafter in good faith.
History:
1962, Act 174, Eff. Jan. 1, 1964
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4 - Bank Deposits and Collections (440.4101...440.4504) › 174-1962-4-4 - Part 4 Relationship Between Payor Bank and Its Customer (440.4401...440.4407) › Section 440.4405 - Death or Incompetence of Customer.

440.4405 Death or incompetence of customer.
Sec. 4405.
(1) A payor or collecting bank's authority to accept, pay or collect an item or to account for proceeds of its collection if otherwise effective is not rendered ineffective by incompetence of a customer of either bank existing at the time the item is issued or its collection is undertaken if the bank does not know of an adjudication of incompetence. Neither death nor incompetence of a customer revokes such authority to accept, pay, collect or account until the bank knows of the fact of death or of an adjudication of incompetence and has reasonable opportunity to act on it.
(2) Even with knowledge a bank may for 10 days after the date of death pay or certify checks drawn on or prior to that date unless ordered to stop payment by a person claiming an interest in the account.
History:
1962, Act 174, Eff. Jan. 1, 1964
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4 - Bank Deposits and Collections (440.4101...440.4504) › 174-1962-4-4 - Part 4 Relationship Between Payor Bank and Its Customer (440.4401...440.4407) › Section 440.4407 - Improper Payment; Subrogation of Payor Bank.

440.4407 Improper payment; subrogation of payor bank.
Sec. 4407.
If a payor bank has paid an item over the order of the drawer or maker to stop payment, or after an account has been closed, or otherwise under circumstances giving a basis for objection by the drawer or maker, to prevent unjust enrichment and only to the extent necessary to prevent loss to the bank by reason of its payment of the item, the payor bank is subrogated to the rights of the following:
(a) Of any holder in due course on the item against the drawer or maker.
(b) Of the payee or any other holder of the item against the drawer or maker either on the item or under the transaction out of which the item arose.
(c) Of the drawer or maker against the payee or any other holder of the item with respect to the transaction out of which the item arose.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4 - Bank Deposits and Collections (440.4101...440.4504) › 174-1962-4-5 - Part 5 Collection of Documentary Drafts (440.4501...440.4504) › Section 440.4501 - Documentary Draft; Presentment, Notice of Dishonor.

440.4501 Documentary draft; presentment, notice of dishonor.
Sec. 4501.
A bank which takes a documentary draft for collection must present or send the draft and accompanying documents for presentment and upon learning that the draft has not been paid or accepted in due course must seasonably notify its customer of such fact even though it may have discounted or bought the draft or extended credit available for withdrawal as of right.
History:
1962, Act 174, Eff. Jan. 1, 1964
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4 - Bank Deposits and Collections (440.4101...440.4504) › 174-1962-4-5 - Part 5 Collection of Documentary Drafts (440.4501...440.4504) › Section 440.4502 - Documentary Draft; Presentment on Arrival of Goods, Refusal for Non-Arrival; Notice to Transferor.

440.4502 Documentary draft; presentment on arrival of goods, refusal for non-arrival; notice to transferor.
Sec. 4502.
When a draft or the relevant instructions require presentment "on arrival", "when goods arrive" or the like, the collecting bank need not present until in its judgment a reasonable time for arrival of the goods has expired. Refusal to pay or accept because the goods have not arrived is not dishonor; the bank must notify its transferor of such refusal but need not present the draft again until it is instructed to do so or learns of the arrival of the goods.
History:
1962, Act 174, Eff. Jan. 1, 1964
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4 - Bank Deposits and Collections (440.4101...440.4504) › 174-1962-4-5 - Part 5 Collection of Documentary Drafts (440.4501...440.4504) › Section 440.4503 - Documentary Draft; Responsibility of Presenting Bank for Documents and Goods; Report of Reasons for Dishonor; Referees; Expenses.

440.4503 Documentary draft; responsibility of presenting bank for documents and goods; report of reasons for dishonor; referees; expenses.
Sec. 4503.
Unless otherwise instructed and except as provided in article 5 a bank presenting a documentary draft
(a) must deliver the documents to the drawee on acceptance of the draft if it is payable more than 3 days after presentment; otherwise, only on payment; and
(b) upon dishonor, either in the case of presentment for acceptance or presentment for payment, may seek and follow instructions from any referee in case of need designated in the draft or if the presenting bank does not choose to utilize his services it must use diligence and good faith to ascertain the reason for dishonor, must notify its transferor of the dishonor and of the results of its effort to ascertain the reasons therefor and must request instructions.
But the presenting bank is under no obligation with respect to goods represented by the documents except to follow any reasonable instructions seasonably received; it has a right to reimbursement for any expense incurred in following instructions and to prepayment of or indemnity for such expenses.
History:
1962, Act 174, Eff. Jan. 1, 1964
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4 - Bank Deposits and Collections (440.4101...440.4504) › 174-1962-4-5 - Part 5 Collection of Documentary Drafts (440.4501...440.4504) › Section 440.4504 - Documentary Draft; Presenting Bank's Right to Deal With Goods; Lien for Expenses.

440.4504 Documentary draft; presenting bank's right to deal with goods; lien for expenses.
Sec. 4504.
(1) A presenting bank which, following the dishonor of a documentary draft, has seasonably requested instructions but does not receive them within a reasonable time may store, sell, or otherwise deal with the goods in any reasonable manner.
(2) For its reasonable expenses incurred by action under subsection (1) the presenting bank has a lien upon the goods or their proceeds, which may be foreclosed in the same manner as an unpaid seller's lien.
History:
1962, Act 174, Eff. Jan. 1, 1964
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4A - Funds Transfers (440.4601...440.4957) › 174-1962-4A-1 - Part 1 Subject Matters and Definitions (440.4601...440.4608) › Section 440.4601 - Short Title.

440.4601 Short title.
Sec. 4A101.
This article shall be known and may be cited as "uniform commercial code—funds transfers".
History:
Add. 1992, Act 100, Imd. Eff. June 25, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4A - Funds Transfers (440.4601...440.4957) › 174-1962-4A-1 - Part 1 Subject Matters and Definitions (440.4601...440.4608) › Section 440.4602 - Applicability of Article.

440.4602 Applicability of article.
Sec. 4A102.
Except as otherwise provided in section 4A108, this article applies to funds transfers defined in section 4A104.
History:
Add. 1992, Act 100, Imd. Eff. June 25, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4A - Funds Transfers (440.4601...440.4957) › 174-1962-4A-1 - Part 1 Subject Matters and Definitions (440.4601...440.4608) › Section 440.4603 - Definitions; Instruction as a Separate Payment Order; Issuance of Payment Order.

440.4603 Definitions; instruction as a separate payment order; issuance of payment order.
Sec. 4A103.
(1) As used in this article:
(a) "Payment order" means an instruction of a sender to a receiving bank, transmitted orally, electronically, or in writing, to pay, or to cause another bank to pay, a fixed or determinable amount of money to a beneficiary if the following apply:
(i) The instruction does not state a condition to payment to the beneficiary other than time of payment.
(ii) The receiving bank is to be reimbursed by debiting an account of, or otherwise receiving payment from, the sender.
(iii) The instruction is transmitted by the sender directly to the receiving bank or to an agent, funds-transfer system, or communication system for transmittal to the receiving bank.
(b) "Beneficiary" means the person to be paid by the beneficiary's bank.
(c) "Beneficiary's bank" means the bank identified in a payment order in which an account of the beneficiary is to be credited pursuant to the order or which otherwise is to make payment to the beneficiary if the order does not provide for payment to an account.
(d) "Receiving bank" means the bank to which the sender's instruction is addressed.
(e) "Sender" means the person giving the instruction to the receiving bank.
(2) If an instruction complying with subsection (1)(a) is to make more than 1 payment to a beneficiary, the instruction is a separate payment order with respect to each payment.
(3) A payment order is issued when it is sent to the receiving bank.
History:
Add. 1992, Act 100, Imd. Eff. June 25, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4A - Funds Transfers (440.4601...440.4957) › 174-1962-4A-1 - Part 1 Subject Matters and Definitions (440.4601...440.4608) › Section 440.4604 - Definitions.

440.4604 Definitions.
Sec. 4A104.
As used in this article:
(a) "Funds transfer" means the series of transactions, beginning with the originator's payment order, made for the purpose of making payment to the beneficiary of the order. The term includes any payment order issued by the originator's bank or an intermediary bank intended to carry out the originator's payment order. A funds transfer is completed by acceptance by the beneficiary's bank of a payment order for the benefit of the beneficiary of the originator's payment order.
(b) "Intermediary bank" means a receiving bank other than the originator's bank or the beneficiary's bank.
(c) "Originator" means the sender of the first payment order in a funds transfer.
(d) "Originator's bank" means (i) the receiving bank to which the payment order of the originator is issued if the originator is not a bank, or (ii) the originator if the originator is a bank.
History:
Add. 1992, Act 100, Imd. Eff. June 25, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4A - Funds Transfers (440.4601...440.4957) › 174-1962-4A-1 - Part 1 Subject Matters and Definitions (440.4601...440.4608) › Section 440.4605 - Definitions; Sections Where Other Definitions Appear.

440.4605 Definitions; sections where other definitions appear.
Sec. 4A105.
(1) As used in this article:
(a) "Authorized account" means a deposit account of a customer in a bank designated by the customer as a source of payment of payment orders issued by the customer to the bank. If a customer does not so designate an account, any account of the customer is an authorized account if payment of a payment order from that account is not inconsistent with a restriction on the use of that account.
(b) "Bank" means a person engaged in the business of banking and includes a savings bank, savings and loan association, credit union, and trust company. A branch or separate office of a bank is a separate bank for purposes of this article.
(c) "Customer" means a person, including a bank, having an account with a bank or from whom a bank has agreed to receive payment orders.
(d) "Funds-transfer business day" of a receiving bank means the part of a day during which the receiving bank is open for the receipt, processing, and transmittal of payment orders and cancellations and amendments of payment orders.
(e) "Funds-transfer system" means a wire transfer network, automated clearinghouse, or other communication system of a clearinghouse or other association of banks through which a payment order by a bank may be transmitted to the bank to which the order is addressed.
(f) "Prove" with respect to a fact means to meet the burden of establishing the fact as defined in section 1201(2)(h).
(2) Other definitions applying to this article and the sections in which they appear are as follows:
"Acceptance".
Section 4A209.
"Beneficiary".
Section 4A103.
"Beneficiary's bank".
Section 4A103.
"Executed".
Section 4A301.
"Execution date".
Section 4A301.
"Funds transfer".
Section 4A104.
"Funds-transfer system rule".
Section 4A501.
"Intermediary bank".
Section 4A104.
"Originator".
Section 4A104.
"Originator's bank".
Section 4A104.
"Payment by beneficiary's bank to beneficiary".
Section 4A405.
"Payment by originator to beneficiary".
Section 4A406.
"Payment by sender to receiving bank".
Section 4A403.
"Payment date".
Section 4A401.
"Payment order".
Section 4A103.
"Receiving bank".
Section 4A103.
"Security procedure".
Section 4A201.
"Sender".
Section 4A103.
(3) The following definitions in article 4 apply to this article:
"Clearing-house".
Section 4104.
"Item".
Section 4104.
"Suspends payments".
Section 4104.
(4) In addition, article 1 contains general definitions and principles of construction and interpretation applicable throughout this article.
History:
Add. 1992, Act 100, Imd. Eff. June 25, 1992 ;-- Am. 2012, Act 86, Eff. July 1, 2013
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4A - Funds Transfers (440.4601...440.4957) › 174-1962-4A-1 - Part 1 Subject Matters and Definitions (440.4601...440.4608) › Section 440.4606 - Payment Order or Communication Canceling or Amending Payment Order; Determining Time of Receipt.

440.4606 Payment order or communication canceling or amending payment order; determining time of receipt.
Sec. 4A106.
(1) The time of receipt of a payment order or communication canceling or amending a payment order is determined by the rules applicable to receipt of a notice stated in section 1202. A receiving bank may fix a cut-off time or times on a funds transfer business day for the receipt and processing of payment orders and communications canceling or amending payment orders. Different cut-off times may apply to payment orders, cancellations, or amendments, or to different categories of payment orders, cancellations, or amendments. A cut-off time may apply to senders generally or different cut-off times may apply to different senders or categories of payment orders. If a payment order or communication canceling or amending a payment order is received after the close of a funds transfer business day or after the appropriate cut-off time on a funds transfer business day, the receiving bank may treat the payment order or communication as received at the opening of the next funds transfer business day.
(2) If this article refers to an execution date or payment date or states a day on which a receiving bank is required to take action, and the date or day does not fall on a funds transfer business day, the next day that is a funds transfer business day is treated as the date or day stated, unless the contrary is stated in this article.
History:
Add. 1992, Act 100, Imd. Eff. June 25, 1992 ;-- Am. 2012, Act 86, Eff. July 1, 2013
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4A - Funds Transfers (440.4601...440.4957) › 174-1962-4A-1 - Part 1 Subject Matters and Definitions (440.4601...440.4608) › Section 440.4607 - Regulations of Federal Reserve System as Superseding Article.

440.4607 Regulations of federal reserve system as superseding article.
Sec. 4A107.
Regulations of the board of governors of the federal reserve system and operating circulars of the federal reserve banks supersede any inconsistent provision of this article to the extent of the inconsistency.
History:
Add. 1992, Act 100, Imd. Eff. June 25, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4A - Funds Transfers (440.4601...440.4957) › 174-1962-4A-1 - Part 1 Subject Matters and Definitions (440.4601...440.4608) › Section 440.4608 - Applicability of Article to Certain Funds Transfer; Inconsistency; "Electronic Fund Transfer Act" Defined.

440.4608 Applicability of article to certain funds transfer; inconsistency; "electronic fund transfer act" defined.
Sec. 4A108.
(1) Except as provided in subsection (2), this article does not apply to a funds transfer any part of which is governed by the electronic fund transfer act.
(2) This article applies to a funds transfer that is a remittance transfer as defined in 15 USC 1693o-1, unless the remittance transfer is an electronic fund transfer as defined in 15 USC 1693a.
(3) In a funds transfer to which this article applies, in the event of an inconsistency between an applicable provision of this article and an applicable provision of the electronic fund transfer act, the provision of the electronic fund transfer act governs to the extent of the inconsistency.
(4) As used in this section, "electronic fund transfer act" means the electronic fund transfer act, 15 USC 1693 to 1693r.
History:
Add. 1992, Act 100, Imd. Eff. June 25, 1992 ;-- Am. 2014, Act 105, Imd. Eff. Apr. 10, 2014
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4A - Funds Transfers (440.4601...440.4957) › 174-1962-4A-2 - Part 2 Issue and Acceptance of Payment Order (440.4701...440.4712) › Section 440.4701 - “Security Procedure” Defined.

440.4701 “Security procedure” defined.
Sec. 4A201.
"Security procedure" means a procedure established by agreement of a customer and a receiving bank for the purpose of (i) verifying that a payment order or communication amending or canceling a payment order is that of the customer, or (ii) detecting error in the transmission of the content of the payment order or communication. A security procedure may require the use of algorithms or other codes, identifying words or numbers, encryption, callback procedures, or similar security devices. Comparison of a signature on a payment order or communication with an authorized specimen signature of the customer is not by itself a security procedure.
History:
Add. 1992, Act 100, Imd. Eff. June 25, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4A - Funds Transfers (440.4601...440.4957) › 174-1962-4A-2 - Part 2 Issue and Acceptance of Payment Order (440.4701...440.4712) › Section 440.4703 - Payment Order Effective Pursuant to MCL 440.4702; Application of Rules; Applicability of Section to Amendments of Payment Orders.

440.4703 Payment order effective pursuant to MCL 440.4702; application of rules; applicability of section to amendments of payment orders.
Sec. 4A203.
(1) If an accepted payment order is not, under section 4A202(1), an authorized order of a customer identified as sender, but is effective as an order of the customer pursuant to section 4A202(2), the following rules apply:
(a) By express written agreement, the receiving bank may limit the extent to which it is entitled to enforce or retain payment of the payment order.
(b) The receiving bank is not entitled to enforce or retain payment of the payment order if the customer proves that the order was not caused, directly or indirectly, by a person (i) entrusted at anytime with duties to act for the customer with respect to payment orders or the security procedure, or (ii) who obtained access to transmitting facilities of the customer or who obtained, from a source controlled by the customer and without authority of the receiving bank, information facilitating breach of the security procedure, regardless of how the information was obtained or whether the customer was at fault. Information includes any access device, computer software, or the like.
(2) This section applies to amendments of payment orders to the same extent it applies to payment orders.
History:
Add. 1992, Act 100, Imd. Eff. June 25, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4A - Funds Transfers (440.4601...440.4957) › 174-1962-4A-2 - Part 2 Issue and Acceptance of Payment Order (440.4701...440.4712) › Section 440.4704 - Receiving Bank; Acceptance of Unauthorized or Nonenforceable Payment; Refund; Interest; Recovery; Reasonable Time Fixed by Agreement; Agreement to Vary Obligation to Refund Payment Prohibited.

440.4704 Receiving bank; acceptance of unauthorized or nonenforceable payment; refund; interest; recovery; reasonable time fixed by agreement; agreement to vary obligation to refund payment prohibited.
Sec. 4A204.
(1) If a receiving bank accepts a payment order issued in the name of its customer as sender which is (i) not authorized and not effective as the order of the customer under section 4A202, or (ii) not enforceable, in whole or in part, against the customer under section 4A203, the bank shall refund any payment of the payment order received from the customer to the extent the bank is not entitled to enforce payment and shall pay interest on the refundable amount calculated from the date the bank received payment to the date of the refund. However, the customer is not entitled to interest from the bank on the amount to be refunded if the customer fails to exercise ordinary care to determine that the order was not authorized by the customer and to notify the bank of the relevant facts within a reasonable time not exceeding 90 days after the date the customer received notification from the bank that the order was accepted or that the customer's account was debited with respect to the order. The bank is not entitled to any recovery from the customer on account of a failure by the customer to give notification as stated in this section.
(2) Reasonable time under subsection (1) may be fixed by agreement as stated in section 1302(2), but the obligation of a receiving bank to refund payment as stated in subsection (1) may not otherwise be varied by agreement.
History:
Add. 1992, Act 100, Imd. Eff. June 25, 1992 ;-- Am. 2012, Act 86, Eff. July 1, 2013
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4A - Funds Transfers (440.4601...440.4957) › 174-1962-4A-2 - Part 2 Issue and Acceptance of Payment Order (440.4701...440.4712) › Section 440.4705 - Erroneous Payment Order; Duty and Liability of Sender Upon Notification From Receiving Bank; Applicability of Section to Amendments to Payment Orders.

440.4705 Erroneous payment order; duty and liability of sender upon notification from receiving bank; applicability of section to amendments to payment orders.
Sec. 4A205.
(1) If an accepted payment order was transmitted pursuant to a security procedure for the detection of error and the payment order (i) erroneously instructed payment to a beneficiary not intended by the sender, (ii) erroneously instructed payment in an amount greater than the amount intended by the sender, or (iii) was an erroneously transmitted duplicate of a payment order previously sent by the sender, the following rules apply:
(a) If the sender proves that the sender or a person acting on behalf of the sender pursuant to section 4A206 complied with the security procedure and that the error would have been detected if the receiving bank had also complied, the sender is not obliged to pay the order to the extent stated in subdivisions (b) and (c).
(b) If the funds transfer is completed on the basis of an erroneous payment order described in subsection (1)(i) or (iii), the sender is not obliged to pay the order and the receiving bank is entitled to recover from the beneficiary any amount paid to the beneficiary to the extent allowed by the law governing mistake and restitution.
(c) If the funds transfer is completed on the basis of a payment order described in subsection (1)(ii), the sender is not obliged to pay the order to the extent the amount received by the beneficiary is greater than the amount intended by the sender. In that case, the receiving bank is entitled to recover from the beneficiary the excess amount received to the extent allowed by the law governing mistake and restitution.
(2) If (i) the sender of an erroneous payment order described in subsection (1) is not obliged to pay all or part of the order, and (ii) the sender receives notification from the receiving bank that the order was accepted by the bank or that the sender's account was debited with respect to the order, the sender has a duty to exercise ordinary care, on the basis of information available to the sender, to discover the error with respect to the order and to advise the bank of the relevant facts within a reasonable time, not exceeding 90 days, after the bank's notification was received by the sender. If the bank proves that the sender failed to perform that duty, the sender is liable to the bank for the loss the bank proves it incurred as a result of the failure, but the liability of the sender may not exceed the amount of the sender's order.
(3) This section applies to amendments to payment orders to the same extent it applies to payment orders.
History:
Add. 1992, Act 100, Imd. Eff. June 25, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4A - Funds Transfers (440.4601...440.4957) › 174-1962-4A-2 - Part 2 Issue and Acceptance of Payment Order (440.4701...440.4712) › Section 440.4706 - Transmitting Payment Order to Funds-Transfer System or Other Third-Party Communication System; System as Agent; Effect of Discrepancy; Applicability of Section.

440.4706 Transmitting payment order to funds-transfer system or other third-party communication system; system as agent; effect of discrepancy; applicability of section.
Sec. 4A206.
(1) If a payment order addressed to a receiving bank is transmitted to a funds-transfer system or other third-party communication system for transmittal to the bank, the system is deemed to be an agent of the sender for the purpose of transmitting the payment order to the bank. If there is a discrepancy between the terms of the payment order transmitted to the system and the terms of the payment order transmitted by the system to the bank, the terms of the payment order of the sender are those transmitted by the system. This section does not apply to a funds-transfer system of the federal reserve banks.
(2) This section applies to cancellations and amendments of payment orders to the same extent it applies to payment orders.
History:
Add. 1992, Act 100, Imd. Eff. June 25, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4A - Funds Transfers (440.4601...440.4957) › 174-1962-4A-2 - Part 2 Issue and Acceptance of Payment Order (440.4701...440.4712) › Section 440.4708 - Payment Order; Identification of Intermediary or Beneficiary Bank; Rules.

440.4708 Payment order; identification of intermediary or beneficiary bank; rules.
Sec. 4A208.
(1) The following rules apply to a payment order identifying an intermediary bank or the beneficiary's bank only by an identifying number:
(a) The receiving bank may rely on the number as the proper identification of the intermediary or beneficiary's bank and need not determine whether the number identifies a bank.
(b) The sender is obliged to compensate the receiving bank for any loss and expenses incurred by the receiving bank as a result of its reliance on the number in executing or attempting to execute the order.
(2) The following rules apply to a payment order identifying an intermediary bank or the beneficiary's bank both by name and an identifying number if the name and number identify different persons.
(a) If the sender is a bank, the receiving bank may rely on the number as the proper identification of the intermediary or beneficiary's bank if the receiving bank, when it executes the sender's order, does not know that the name and number identify different persons. The receiving bank need not determine whether the name and number refer to the same person or whether the number refers to a bank. The sender is obliged to compensate the receiving bank for any loss and expenses incurred by the receiving bank as a result of its reliance on the number in executing or attempting to execute the order.
(b) If the sender is not a bank and the receiving bank proves that the sender, before the payment order was accepted, had notice that the receiving bank might rely on the number as the proper identification of the intermediary or beneficiary's bank even if it identifies a person different from the bank identified by name, the rights and obligations of the sender and the receiving bank are governed by subsection (2)(a), as though the sender were a bank. Proof of notice may be made by any admissible evidence. The receiving bank satisfies the burden of proof if it proves that the sender, before the payment order was accepted, signed a writing stating the information to which the notice relates.
(c) Regardless of whether the sender is a bank, the receiving bank may rely on the name as the proper identification of the intermediary or beneficiary's bank if the receiving bank, at the time it executes the sender's order, does not know that the name and number identify different persons. The receiving bank need not determine whether the name and number refer to the same person.
(d) If the receiving bank knows that the name and number identify different persons, reliance on either the name or the number in executing the sender's payment order is a breach of the obligation stated in section 4A302(1)(a).
History:
Add. 1992, Act 100, Imd. Eff. June 25, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4A - Funds Transfers (440.4601...440.4957) › 174-1962-4A-2 - Part 2 Issue and Acceptance of Payment Order (440.4701...440.4712) › Section 440.4710 - Rejection of Payment Order.

440.4710 Rejection of payment order.
Sec. 4A210.
(1) 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, any means complying with the agreement is reasonable and any means not complying is not reasonable unless no significant delay in receipt of the notice resulted from the use of the noncomplying means.
(2) 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 4A211(4) 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.
(3) If a receiving bank suspends payments, all unaccepted payment orders issued to it are deemed rejected at the time the bank suspends payments.
(4) Acceptance of a payment order precludes a later rejection of the order. Rejection of a payment order precludes a later acceptance of the order.
History:
Add. 1992, Act 100, Imd. Eff. June 25, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4A - Funds Transfers (440.4601...440.4957) › 174-1962-4A-2 - Part 2 Issue and Acceptance of Payment Order (440.4701...440.4712) › Section 440.4712 - Receiving Bank; Failure to Accept Payment Order; Liability for Breach of Agreement to Accept Payment Order.

440.4712 Receiving bank; failure to accept payment order; liability for breach of agreement to accept payment order.
Sec. 4A212.
If a receiving bank fails to accept a payment order that it is obliged by express agreement to accept, the bank is liable for breach of the agreement to the extent provided in the agreement or in this article, but does not otherwise have any duty to accept a payment order or, before acceptance, to take any action, or refrain from taking action, with respect to the order except as provided in this article or by express agreement. Liability based on acceptance arises only when acceptance occurs as stated in section 4A209, and liability is limited to that provided in this article. A receiving bank is not the agent of the sender or beneficiary of the payment order it accepts, or of any other party to the funds transfer, and the bank owes no duty to any party to the funds transfer except as provided in this article or by express agreement.
History:
Add. 1992, Act 100, Imd. Eff. June 25, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4A - Funds Transfers (440.4601...440.4957) › 174-1962-4A-3 - Part 3 Execution of Sender's Payment Order by Receiving Bank (440.4801...440.4805) › Section 440.4801 - Execution of Payment Order; “Execution Date” Defined.

440.4801 Execution of payment order; “execution date” defined.
Sec. 4A301.
(1) A payment order is "executed" by the receiving bank when it issues a payment order intended to carry out the payment order received by the bank. A payment order received by the beneficiary's bank can be accepted but cannot be executed.
(2) "Execution date" of a payment order means the day on which the receiving bank may properly issue a payment order in execution of the sender's order. The execution date may be determined by instruction of the sender but cannot be earlier than the day the order is received and, unless otherwise determined, is the day the order is received. If the sender's instruction states a payment date, the execution date is the payment date or an earlier date on which execution is reasonably necessary to allow payment to the beneficiary on the payment date.
History:
Add. 1992, Act 100, Imd. Eff. June 25, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4A - Funds Transfers (440.4601...440.4957) › 174-1962-4A-3 - Part 3 Execution of Sender's Payment Order by Receiving Bank (440.4801...440.4805) › Section 440.4803 - Receiving Bank; Payment of Sender's Order Pursuant to MCL 440.4902(3); Effect of Erroneous Payment Order; Applicability of Subsection (2); Obligation of Sender to Pay Payment Order; Recovery by Issuer From Beneficiary.

440.4803 Receiving bank; payment of sender's order pursuant to MCL 440.4902(3); effect of erroneous payment order; applicability of subsection (2); obligation of sender to pay payment order; recovery by issuer from beneficiary.
Sec. 4A303.
(1) A receiving bank that executes the payment order of the sender by issuing a payment order in an amount greater than the amount of the sender's order, or issues a payment order in execution of the sender's order and then issues a duplicate order, is entitled to payment of the amount of the sender's order under section 4A402(3) if that subsection is otherwise satisfied. The bank is entitled to recover from the beneficiary of the erroneous order the excess payment received to the extent allowed by the law governing mistake and restitution.
(2) A receiving bank that executes the payment order of the sender by issuing a payment order in an amount less than the amount of the sender's order is entitled to payment of the amount of the sender's order under section 4A402(3) if that subsection is otherwise satisfied and the bank corrects its mistake by issuing an additional payment order for the benefit of the beneficiary of the sender's order. If the error is not corrected, the issuer of the erroneous order is entitled to receive or retain payment from the sender of the order it accepted only to the extent of the amount of the erroneous order. This subsection does not apply if the receiving bank executes the sender's payment order by issuing a payment order in an amount less than the amount of the sender's order for the purpose of obtaining payment of its charges for services and expenses pursuant to instruction of the sender.
(3) If a receiving bank executes the payment order of the sender by issuing a payment order to a beneficiary different from the beneficiary of the sender's order and the funds transfer is completed on the basis of that error, the sender of the payment order that was erroneously executed and all previous senders in the funds transfer are not obliged to pay the payment orders they issued. The issuer of the erroneous order is entitled to recover from the beneficiary of the order the payment received to the extent allowed by the law governing mistake and restitution.
History:
Add. 1992, Act 100, Imd. Eff. June 25, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4A - Funds Transfers (440.4601...440.4957) › 174-1962-4A-3 - Part 3 Execution of Sender's Payment Order by Receiving Bank (440.4801...440.4805) › Section 440.4804 - Notification From Receiving Bank of Erroneously Executed Payment Order; Duties of Sender; Obligation to Pay Interest; Recovery by Bank Prohibited.

440.4804 Notification from receiving bank of erroneously executed payment order; duties of sender; obligation to pay interest; recovery by bank prohibited.
Sec. 4A304.
If the sender of a payment order that is erroneously executed as stated in section 4A303 receives notification from the receiving bank that the order was executed or that the sender's account was debited with respect to the order, the sender has a duty to exercise ordinary care to determine, on the basis of information available to the sender, that the order was erroneously executed and to notify the bank of the relevant facts within a reasonable time not exceeding 90 days after the notification from the bank was received by the sender. If the sender fails to perform that duty, the bank is not obliged to pay interest on any amount refundable to the sender under section 4A402(4) for the period before the bank learns of the execution error. The bank is not entitled to any recovery from the sender on account of a failure by the sender to perform the duty stated in this section.
History:
Add. 1992, Act 100, Imd. Eff. June 25, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4A - Funds Transfers (440.4601...440.4957) › 174-1962-4A-3 - Part 3 Execution of Sender's Payment Order by Receiving Bank (440.4801...440.4805) › Section 440.4805 - Receiving Bank; Payment Delay; Interest; Liability to Originator for Expenses Resulting From Improper Execution; Recovery of Damages; Failure to Execute Pursuant to Express Agreement; Attorney Fees; Liability of Bank Under Subsections (1) and (2) Not Varied by Agreement.

440.4805 Receiving bank; payment delay; interest; liability to originator for expenses resulting from improper execution; recovery of damages; failure to execute pursuant to express agreement; attorney fees; liability of bank under subsections (1) and (2) not varied by agreement.
Sec. 4A305.
(1) If a funds transfer is completed but execution of a payment order by the receiving bank in breach of section 4A302 results in delay in payment to the beneficiary, the bank is obliged to pay interest to either the originator or the beneficiary of the funds transfer for the period of delay caused by the improper execution. Except as provided in subsection (3), additional damages are not recoverable.
(2) If execution of a payment order by a receiving bank in breach of section 4A302 results in noncompletion of the funds transfer, failure to use an intermediary bank designated by the originator, or issuance of a payment order that does not comply with the terms of the payment order of the originator, the bank is liable to the originator for its expenses in the funds transfer and for incidental expenses and interest losses, to the extent not covered by subsection (1), resulting from the improper execution. Except as provided in subsection (3), additional damages are not recoverable.
(3) In addition to the amounts payable under subsections (1) and (2), damages, including consequential damages, are recoverable to the extent provided in an express written agreement of the receiving bank.
(4) If a receiving bank fails to execute a payment order it was obliged by express agreement to execute, the receiving bank is liable to the sender for its expenses in the transaction and for incidental expenses and interest losses resulting from the failure to execute. Additional damages, including consequential damages, are recoverable to the extent provided in an express written agreement of the receiving bank, but are not otherwise recoverable.
(5) Reasonable attorney's fees are recoverable if demand for compensation under subsection (1) or (2) is made and refused before an action is brought on the claim. If a claim is made for breach of an agreement under subsection (4) and the agreement does not provide for damages, reasonable attorney's fees are recoverable if demand for compensation under subsection (4) is made and refused before an action is brought on the claim.
(6) Except as stated in this section, the liability of a receiving bank under subsections (1) and (2) may not be varied by agreement.
History:
Add. 1992, Act 100, Imd. Eff. June 25, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4A - Funds Transfers (440.4601...440.4957) › 174-1962-4A-4 - Part 4 Payment (440.4901...440.4906) › Section 440.4901 - “Payment Date” Defined.

440.4901 “Payment date” defined.
Sec. 4A401.
"Payment date" of a payment order means the day on which the amount of the order is payable to the beneficiary by the beneficiary's bank. The payment date may be determined by instruction of the sender but cannot be earlier than the day the order is received by the beneficiary's bank and, unless otherwise determined, is the day the order is received by the beneficiary's bank.
History:
Add. 1992, Act 100, Imd. Eff. June 25, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 4A - Funds Transfers (440.4601...440.4957) › 174-1962-4A-4 - Part 4 Payment (440.4901...440.4906) › Section 440.4902 - Payment Order Issued to Beneficiary or Receiving Bank Subject to MCL 440.4705 and 440.4707; Payment by Sender; Refund; Right of Sender Executing Payment Order to Receive or Retain Payment; Right of Sender to Be Excused From Obligation to Pay or Receive Refund Not Varied by Agreement.

440.4902 Payment order issued to beneficiary or receiving bank subject to MCL 440.4705 and 440.4707; payment by sender; refund; right of sender executing payment order to receive or retain payment; right of sender to be excused from obligation to pay or receive refund not varied by agreement.
Sec. 4A402.
(1) This section is subject to sections 4A205 and 4A207.
(2) With respect to a payment order issued to the beneficiary's bank, acceptance of the order by the bank obliges the sender to pay the bank the amount of the order, but payment is not due until the payment date of the order.
(3) This subsection is subject to subsection (5) and to section 4A303. With respect to a payment order issued to a receiving bank other than the beneficiary's bank, acceptance of the order by the receiving bank obliges the sender to pay the bank the amount of the sender's order. Payment by the sender is not due until the execution date of the sender's order. The obligation of that sender to pay its payment order is excused if the funds transfer is not completed by acceptance by the beneficiary's bank of a payment order instructing payment to the beneficiary of that sender's payment order.
(4) If the sender of a payment order pays the order and was not obliged to pay all or part of the amount paid, the bank receiving payment is obliged to refund payment to the extent the sender was not obliged to pay. Except as provided in sections 4A204 and 4A304, interest is payable on the refundable amount from the date of payment.
(5) If a funds transfer is not completed as stated in subsection (3) and an intermediary bank is obliged to refund payment as stated in subsection (4) but is unable to do so because not permitted by applicable law or because the bank suspends payments, a sender in the funds transfer that executed a payment order in compliance with an instruction, as stated in section 4A302(1)(a), to route the funds transfer through that intermediary bank is entitled to receive or retain payment from the sender of the payment order that it accepted. The first sender in the funds transfer that issued an instruction requiring routing through that intermediary bank is subrogated to the right of the bank that paid the intermediary bank to refund as stated in subsection (4).
(6) The right of the sender of a payment order to be excused from the obligation to pay the order as stated in subsection (3) or to receive refund under subsection (4) may not be varied by agreement.
History:
Add. 1992, Act 100, Imd. Eff. June 25, 1992