reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Commercial Law › Title 4 - Bank Deposits and Collections › Subtitle 5 - Collection of Documentary Drafts › Section 4-503 - Responsibility of Presenting Bank for Documents and Goods; Report of Reasons for Dishonor; Referee in Case of Need

Unless otherwise instructed and except as provided in Title 5, a bank presenting a documentary draft:
(1)    Must deliver the documents to the drawee on acceptance of the draft if it is payable more than three days after presentment; otherwise, only on payment; and
(2)    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 the referee’s services, it must use diligence and good faith to ascertain the reasons 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.
However 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 those expenses.
2023 Maryland Statutes › Commercial Law › Title 4 - Bank Deposits and Collections › Subtitle 5 - Collection of Documentary Drafts › Section 4-504 - Privilege of Presenting Bank to Deal With Goods; Security Interest for Expenses

(a)    A presenting bank that, 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.
(b)    For its reasonable expenses incurred by action under subsection (a) 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.
2023 Maryland Statutes › Commercial Law › Title 4A - Funds Transfers › Subtitle 1 - Subject Matter and Definitions › Section 4A-103 - Payment Order; Definitions

(a)    In this title:
(1)    “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:
(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; and
(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.
(2)    “Beneficiary” means the person to be paid by the beneficiary’s bank.
(3)    “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.
(4)    “Receiving bank” means the bank to which the sender’s instruction is addressed.
(5)    “Sender” means the person giving the instruction to the receiving bank.
(b)    If an instruction complying with subsection (a)(1) of this section is to make more than 1 payment to a beneficiary, the instruction is a separate payment order with respect to each payment.
(c)    A payment order is issued when it is sent to the receiving bank.
2023 Maryland Statutes › Commercial Law › Title 4A - Funds Transfers › Subtitle 1 - Subject Matter and Definitions › Section 4A-104 - Funds Transfer; Definitions

In this title:
(1)    “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 by 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.
(2)    “Intermediary bank” means a receiving bank other than:
(i)    The originator’s bank; or
(ii)    The beneficiary’s bank.
(3)    “Originator” means the sender of the first payment order in a funds transfer.
(4)    “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.
2023 Maryland Statutes › Commercial Law › Title 4A - Funds Transfers › Subtitle 1 - Subject Matter and Definitions › Section 4A-105 - Other Definitions

(a)    In this title:
(1)    “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.
(2)    “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 title.
(3)    “Customer” means a person, including a bank, having an account with a bank or from whom a bank has agreed to receive payment orders.
(4)    “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.
(5)    “Funds–transfer system” means a wire transfer network, automated clearing house, or other communication system of a clearing house 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.
(6)    Reserved.
(7)    “Prove” with respect to a fact means to meet the burden of establishing the fact (§ 1–208(b)(8)).
(b)    Other definitions applying to this title and the sections in which they appear are:
“Acceptance”                  § 4A–209
“Beneficiary”                  § 4A–103
“Beneficiary’s bank”              § 4A–103
“Executed”                       § 4A–301
“Execution date”                  § 4A–301
“Funds transfer”                  § 4A–104
“Funds–transfer system rule”         § 4A–501
“Intermediary bank”              § 4A–104
“Originator”                       § 4A–104
“Originator’s bank”              § 4A–104
“Payment by beneficiary’s bank to      § 4A–405
beneficiary”
“Payment by originator to beneficiary”    § 4A–406
“Payment by sender to receiving bank”    § 4A–403
“Payment date”                  § 4A–401
“Payment order”                  § 4A–103
“Receiving bank”                  § 4A–103
“Security  procedure”              § 4A–201
“Sender”                       § 4A–103
(c)    The following definitions in Title 4 of this article apply to this title:
“Clearing house”                 § 4–104
“Item”                       § 4–104
“Suspends payments”              § 4–104
(d)    In addition, Title 1 of this article contains general definitions and principles of construction and interpretation applicable throughout this title.
2023 Maryland Statutes › Commercial Law › Title 4A - Funds Transfers › Subtitle 1 - Subject Matter and Definitions › Section 4A-106 - Time Payment Order Is Received

(a)    (1)    The time of receipt of a payment order or communication cancelling or amending a payment order is determined by the rules applicable to receipt of a notice stated in § 1–202 of this article.
(2)    A receiving bank may fix a cutoff time or times on a funds–transfer business day for the receipt and processing of payment orders and communications cancelling or amending payment orders.
(3)    Different cutoff times may apply to payment orders, cancellations, or amendments, or to different categories of payment orders, cancellations, or amendments.
(4)    A cutoff time may apply to senders generally or different cutoff times may apply to different senders or categories of payment orders.
(5)    If a payment order or communication cancelling or amending a payment order is received after the close of a funds–transfer business day or after the appropriate cutoff 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.
(b)    If this title 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 title.
2023 Maryland Statutes › Commercial Law › Title 4A - Funds Transfers › Subtitle 1 - Subject Matter and Definitions › Section 4A-108 - Exclusion of Consumer Transactions Governed by Federal Law; Exception

(a)    Except as provided in subsection (b) of this section, this title does not apply to a funds transfer any part of which is governed by the Electronic Fund Transfer Act of 1978 (Title XX, Public Law 95–630, 92 Stat. 3728, 15 U.S.C. § 1693 et seq.) as amended from time to time.
(b)    This title applies to a funds transfer that is a remittance transfer as defined in the Electronic Fund Transfer Act (15 U.S.C. § 1693o–1) as amended from time to time, unless the remittance transfer is an electronic fund transfer as defined in the Electronic Fund Transfer Act (15 U.S.C. § 1693a) as amended from time to time.
(c)    In a funds transfer to which this title applies, in the event of an inconsistency between an applicable provision of this title 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.
2023 Maryland Statutes › Commercial Law › Title 4A - Funds Transfers › Subtitle 2 - Issue and Acceptance of Payment Order › Section 4A-201 - Security Procedure

(a)    “Security procedure” means a procedure established by agreement of a customer and a receiving bank for the purpose of:
(1)    Verifying that a payment order or communication amending or cancelling a payment order is that of the customer; or
(2)    Detecting error in the transmission or the content of the payment order or communication.
(b)    A “security procedure” may require the use of algorithms or other codes, identifying words or numbers, encryption, callback procedures, or similar security devices.
(c)    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”.
2023 Maryland Statutes › Commercial Law › Title 4A - Funds Transfers › Subtitle 2 - Issue and Acceptance of Payment Order › Section 4A-202 - Authorized and Verified Payment Orders

(a)    A payment order received by the receiving bank is the authorized order of the person identified as sender if that person authorized the order or is otherwise bound by it under the law of agency.
(b)    (1)    If a bank and its customer have agreed that the authenticity of payment orders issued to the bank in the name of the customer as sender will be verified pursuant to a security procedure, a payment order received by the receiving bank is effective as the order of the customer, whether or not authorized, if:
(i)    The security procedure is a commercially reasonable method of providing security against unauthorized payment orders; and
(ii)    The bank proves that it accepted the payment order in good faith and in compliance with the security procedure and any written agreement or instruction of the customer restricting acceptance of payment orders issued in the name of the customer.
(2)    The bank is not required to follow an instruction that violates a written agreement with the customer or notice of which is not received at a time and in a manner affording the bank a reasonable opportunity to act on it before the payment order is accepted.
(c)    (1)    Commercial reasonableness of a security procedure is a question of law to be determined by considering the wishes of the customer expressed to the bank, the circumstances of the customer known to the bank, including the size, type, and frequency of payment orders normally issued by the customer to the bank, alternative security procedures offered to the customer, and security procedures in general use by customers and receiving banks similarly situated.
(2)    A security procedure is deemed to be commercially reasonable if:
(i)    The security procedure was chosen by the customer after the bank offered, and the customer refused, a security procedure that was commercially reasonable for that customer; and
(ii)    The customer expressly agreed in writing to be bound by any payment order, whether or not authorized, issued in its name and accepted by the bank in compliance with the security procedure chosen by the customer.
(d)    The term “sender” in this title includes the customer in whose name a payment order is issued if the order is the authorized order of the customer under subsection (a) of this section, or it is effective as the order of the customer under subsection (b) of this section.
(e)    This section applies to amendments and cancellations of payment orders to the same extent that it applies to payment orders.
(f)    Except as provided in this section and in § 4A-203(a)(1) of this subtitle, rights and obligations arising under this section or § 4A-203 of this subtitle may not be varied by agreement.
2023 Maryland Statutes › Commercial Law › Title 4A - Funds Transfers › Subtitle 2 - Issue and Acceptance of Payment Order › Section 4A-203 - Unenforceability of Certain Verified Payment Orders

(a)    If an accepted payment order is not an authorized order of a customer identified as sender under § 4A-202(a) of this subtitle, but is effective as an order of the customer pursuant to § 4A-202(b) of this subtitle, the following rules apply:
(1)    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.
(2)    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 any time 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.
(b)    This section applies to amendments of payment orders to the same extent that it applies to payment orders.
2023 Maryland Statutes › Commercial Law › Title 4A - Funds Transfers › Subtitle 2 - Issue and Acceptance of Payment Order › Section 4A-204 - Refund of Payment and Duty of Customer to Report With Respect to Unauthorized Payment Order

(a)    (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 § 4A-202 of this subtitle or (ii) not enforceable, in whole or in part, against the customer under § 4A-203 of this subtitle, the receiving bank shall refund any payment of the payment order received from the customer to the extent that the receiving 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.
(2)    Notwithstanding paragraph (1) of this subsection, 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.
(3)    A receiving 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.
(b)    Reasonable time under subsection (a) of this section may be fixed by agreement as stated in § 1–302(b) of this article, but the obligation of a receiving bank to refund payment as stated in subsection (a) of this section may not otherwise be varied by agreement.
2023 Maryland Statutes › Commercial Law › Title 4A - Funds Transfers › Subtitle 2 - Issue and Acceptance of Payment Order › Section 4A-205 - Erroneous Payment Orders

(a)    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:
(1)    If the sender proves that the sender or a person acting on behalf of the sender pursuant to § 4A-206 of this subtitle 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 paragraphs (2) and (3) of this subsection.
(2)    If the funds transfer is completed on the basis of an erroneous payment order described in clause (i) or (iii) of subsection (a) of this section, 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.
(3)    If the funds transfer is completed on the basis of a payment order described in clause (ii) of subsection (a) of this section, 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.
(b)    If (i) the sender of an erroneous payment order described in subsection (a) of this section 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 receiving bank proves that the sender failed to perform that duty, the sender is liable to the bank for the loss which the bank proves that it incurred as a result of the failure, but the liability of the sender may not exceed the amount of the sender’s order.
(c)    This section applies to amendments to payment orders to the same extent that it applies to payment orders.
2023 Maryland Statutes › Commercial Law › Title 4A - Funds Transfers › Subtitle 2 - Issue and Acceptance of Payment Order › Section 4A-206 - Transmission of Payment Order Through Funds Transfer or Other Communication System

(a)    (1)    If a payment order addressed to a receiving bank is transmitted to a funds-transfer system for transmittal to the bank, the funds-transfer system is deemed to be an agent of the sender for the purpose of transmitting the payment order to the bank.
(2)    If there is a discrepancy between the terms of the payment order transmitted to the funds-transfer system and the terms of the payment order transmitted by the funds-transfer system to the bank, the terms of the payment order of the sender are those transmitted by the funds-transfer system.
(3)    This section does not apply to a funds-transfer system of the Federal Reserve Banks.
(b)    This section applies to cancellations and amendments of payment orders to the same extent that it applies to payment orders.
2023 Maryland Statutes › Commercial Law › Title 4A - Funds Transfers › Subtitle 2 - Issue and Acceptance of Payment Order › Section 4A-208 - Misdescription of Intermediary Bank or Beneficiary's Bank

(a)    In the case where a payment order identifies an intermediary bank or the beneficiary’s bank only by an identifying number:
(1)    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; and
(2)    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)    This subsection applies 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.
(1)    If the sender is a bank:
(i)    The receiving bank:
1.    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; and
2.    Need not determine whether the name and number refer to the same person or whether the number refers to a bank; and
(ii)    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)    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 paragraph (1) of this subsection, 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.
(3)    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.
(4)    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 § 4A-302(a)(1) of this title.
2023 Maryland Statutes › Commercial Law › Title 4A - Funds Transfers › Subtitle 2 - Issue and Acceptance of Payment Order › Section 4A-209 - Acceptance of Payment Order

(a)    Subject to subsection (d) of this section, a receiving bank other than the beneficiary’s bank accepts a payment order when it executes the order.
(b)    Subject to subsections (c) and (d) of this section, a beneficiary’s bank accepts a payment order at the earliest of the following times:
(1)    When the bank:
(i)    Pays the beneficiary as stated in § 4A-405(a) or (b) of this title; or
(ii)    Notifies the beneficiary of receipt of the order or that the account of the beneficiary has been credited with respect to the order unless the notice indicates that the bank is rejecting the order or that funds with respect to the order may not be withdrawn or used until receipt of payment from the sender of the order;
(2)    When the bank receives payment of the entire amount of the sender’s order pursuant to § 4A-403(a)(1) or (2); or
(3)    The opening of the next funds-transfer business day of the bank following the payment date of the order if, at that time, the amount of the sender’s order is fully covered by a withdrawable credit balance in an authorized account of the sender or the bank has otherwise received full payment from the sender, unless the order was rejected before that time or is rejected within:
(i)    1 hour after that time; or
(ii)    1 hour after the opening of the next business day of the sender following the payment date if that time is later. If notice of rejection is received by the sender after the payment 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 payment date to the day the sender receives notice or learns that the order was not accepted, counting that day as an elapsed day. If the withdrawable credit balance during that period falls below the amount of the order, the amount of interest payable is reduced accordingly.
(c)    Acceptance of a payment order cannot occur before the order is received by the receiving bank. Acceptance does not occur under subsection (b)(2) or (3) of this section if the beneficiary of the payment order does not have an account with the receiving bank, the account has been closed, or the receiving bank is not permitted by law to receive credits for the beneficiary’s account.
(d)    (1)    A payment order issued to the originator’s bank cannot be accepted until the payment date if the bank is the beneficiary’s bank, or the execution date if the bank is not the beneficiary’s bank.
(2)    If the originator’s bank executes the originator’s payment order before the execution date or pays the beneficiary of the originator’s payment order before the payment date and the payment order is subsequently cancelled pursuant to § 4A-211(b) of this subtitle, the bank may recover from the beneficiary any payment received to the extent allowed by the law governing mistake and restitution.
2023 Maryland Statutes › Commercial Law › Title 4A - Funds Transfers › Subtitle 2 - Issue and Acceptance of Payment Order › Section 4A-210 - Rejection of Payment Order

(a)    (1)    A payment order is rejected by the receiving bank by a notice of rejection transmitted to the sender orally, electronically, or in writing.
(2)    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.
(3)    Rejection is effective when the notice is given if transmission is by a means that is reasonable in the circumstances.
(4)    If notice of rejection is given by a means that is not reasonable, rejection is effective when the notice is received.
(5)    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 cancelled pursuant to § 4A-211(d) of this subtitle 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.
2023 Maryland Statutes › Commercial Law › Title 4A - Funds Transfers › Subtitle 2 - Issue and Acceptance of Payment Order › Section 4A-212 - Liability and Duty of Receiving Bank Regarding Unaccepted Payment Order

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 title, 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 title or by express agreement. Liability based on acceptance arises only when acceptance occurs as stated in § 4A-209 of this subtitle, and liability is limited to that provided in this title. A receiving bank is not the agent of the sender or of the beneficiary of the payment order that 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 title or by express agreement.
2023 Maryland Statutes › Commercial Law › Title 4A - Funds Transfers › Subtitle 3 - Execution of Sender's Payment Order by Receiving Bank › Section 4A-301 - Execution and Execution Date

(a)    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.
(b)    “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.
2023 Maryland Statutes › Commercial Law › Title 4A - Funds Transfers › Subtitle 3 - Execution of Sender's Payment Order by Receiving Bank › Section 4A-303 - Erroneous Execution of Payment Order

(a)    A receiving bank that:
(1)    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
(2)    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 § 4A-402(c) of this title 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.
(b)    (1)    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 § 4A-402(c) of this title if:
(i)    That subsection is otherwise satisfied; and
(ii)    The bank corrects its mistake by issuing an additional payment order for the benefit of the beneficiary of the sender’s order.
(2)    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.
(3)    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.
(c)    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.
2023 Maryland Statutes › Commercial Law › Title 4A - Funds Transfers › Subtitle 3 - Execution of Sender's Payment Order by Receiving Bank › Section 4A-304 - Duty of Sender to Report Erroneously Executed Payment Order

(a)    If the sender of a payment order that is erroneously executed as stated in § 4A-303 of this subtitle 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.
(b)    If the sender fails to perform the duty imposed under subsection (a) of this section, the bank is not obliged to pay interest on any amount refundable to the sender under § 4A-402(d) of this title for the period before the bank learns of the execution error.
(c)    The bank is not entitled to any recovery from the sender on account of a failure by the sender to perform the duty imposed under subsection (a) of this section.
2023 Maryland Statutes › Commercial Law › Title 4A - Funds Transfers › Subtitle 3 - Execution of Sender's Payment Order by Receiving Bank › Section 4A-305 - Liability for Late or Improper Execution or Failure to Execute Payment Order

(a)    If a funds transfer is completed but execution of a payment order by the receiving bank in breach of § 4A-302 of this subtitle 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 (c) of this section, additional damages are not recoverable.
(b)    (1)    If execution of a payment order by a receiving bank in breach of § 4A-302 of this subtitle results in:
(i)    Noncompletion of the funds transfer;
(ii)    Failure to use an intermediary bank designated by the originator; or
(iii)    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 (a) of this section, resulting from the improper execution.
(2)    Except as provided in subsection (c) of this section, additional damages are not recoverable.
(c)    In addition to the amounts payable under subsections (a) and (b) of this section, damages, including consequential damages, are recoverable to the extent provided in an express written agreement of the receiving bank.
(d)    (1)    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.
(2)    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.
(e)    (1)    Reasonable attorney’s fees are recoverable if demand for compensation under subsection (a) or (b) of this section is made and refused before an action is brought on the claim.
(2)    If a claim is made for breach of an agreement under subsection (d) of this section and the agreement does not provide for damages, reasonable attorney’s fees are recoverable if demand for compensation under subsection (d) of this section is made and refused before an action is brought on the claim.
(f)    Except as stated in this section, the liability of a receiving bank under subsections (a) and (b) of this section may not be varied by agreement.
2023 Maryland Statutes › Commercial Law › Title 4A - Funds Transfers › Subtitle 4 - Payment › Section 4A-401 - Payment Date

“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.
2023 Maryland Statutes › Commercial Law › Title 4A - Funds Transfers › Subtitle 4 - Payment › Section 4A-402 - Obligation of Sender to Pay Receiving Bank

(a)    This section is subject to §§ 4A-205 and 4A-207 of this title.
(b)    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.
(c)    (1)    This subsection is subject to subsection (e) of this section and to § 4A-303 of this title.
(2)    (i)    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.
(ii)    Payment by the sender is not due until the execution date of the sender’s order.
(iii)    The obligation of the 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.
(d)    (1)    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.
(2)    Except as provided in §§ 4A-204 and 4A-304 of this title, interest is payable on the refundable amount from the date of payment.
(e)    (1)    If a funds transfer is not completed as stated in subsection (c) of this section and an intermediary bank is obliged to refund payment as stated in subsection (d) of this section 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 § 4A-302(a)(1) of this title, 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.
(2)    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 (d) of this section.
(f)    The right of the sender of a payment order to be excused from the obligation to pay the order as stated in subsection (c) of this section or to receive refund under subsection (d) of this section may not be varied by agreement.
2023 Maryland Statutes › Commercial Law › Title 4A - Funds Transfers › Subtitle 4 - Payment › Section 4A-403 - Payment by Sender to Receiving Bank

(a)    Payment of the sender’s obligation under § 4A-402 of this subtitle to pay the receiving bank occurs as follows:
(1)    If the sender is a bank, payment occurs when the receiving bank receives final settlement of the obligation through a Federal Reserve Bank or through a funds-transfer system.
(2)    If the sender is a bank and the sender:
(i)    Credited an account of the receiving bank with the sender; or
(ii)    Caused an account of the receiving bank in another bank to be credited, payment occurs when the credit is withdrawn or, if not withdrawn, at midnight of the day on which the credit is withdrawable and the receiving bank learns of that fact.
(3)    If the receiving bank debits an account of the sender with the receiving bank, payment occurs when the debit is made to the extent the debit is covered by a withdrawable credit balance in the account.
(b)    (1)    If the sender and receiving bank are members of a funds-transfer system that nets obligations multilaterally among participants, the receiving bank receives final settlement when settlement is complete in accordance with the rules of the system.
(2)    The obligation of the sender to pay the amount of a payment order transmitted through the funds-transfer system may be satisfied, to the extent permitted by the rules of the system, by setting off and applying against the sender’s obligation the right of the sender to receive payment from the receiving bank of the amount of any other payment order transmitted to the sender by the receiving bank through the funds-transfer system.
(3)    The aggregate balance of obligations owed by each sender to each receiving bank in the funds-transfer system may be satisfied, to the extent permitted by the rules of the system, by setting off and applying against that balance the aggregate balance of obligations owed to the sender by other members of the system.
(4)    The aggregate balance is determined after the right of setoff stated in the second sentence of this subsection has been exercised.
(c)    If 2 banks transmit payment orders to each other under an agreement that settlement of the obligations of each bank to the other under § 4A-402 of this subtitle will be made at the end of the day or other period, the total amount owed with respect to all orders transmitted by 1 bank shall be set off against the total amount owed with respect to all orders transmitted by the other bank. To the extent of the setoff, each bank has made payment to the other.
(d)    In a case not covered by subsection (a) of this section, the time when payment of the sender’s obligation under § 4A-402(b) or (c) of this subtitle occurs is governed by applicable principles of law that determine when an obligation is satisfied.
2023 Maryland Statutes › Commercial Law › Title 4A - Funds Transfers › Subtitle 4 - Payment › Section 4A-404 - Obligation of Beneficiary's Bank to Pay and Give Notice to Beneficiary

(a)    Subject to §§ 4A-211(e) and 4A-405(d) and (e) of this title, if a beneficiary’s bank accepts a payment order, the bank is obliged to pay the amount of the order to the beneficiary of the order. Payment is due on the payment date of the order, but if acceptance occurs on the payment date after the close of the funds-transfer business day of the bank, payment is due on the next funds-transfer business day. If the bank refuses to pay after demand by the beneficiary and receipt of notice of particular circumstances that will give rise to consequential damages as a result of nonpayment, the beneficiary may recover damages resulting from the refusal to pay to the extent the bank had notice of the damages, unless the bank proves that it did not pay because of a reasonable doubt concerning the right of the beneficiary to payment.
(b)    If a payment order accepted by the beneficiary’s bank instructs payment to an account of the beneficiary, the bank is obliged to notify the beneficiary of receipt of the order before midnight of the next funds-transfer business day following the payment date. If the payment order does not instruct payment to an account of the beneficiary, the bank is required to notify the beneficiary only if notice is required by the order. Notice may be given by first class mail or any other means reasonable in the circumstances. If the bank fails to give the required notice, the bank is obliged to pay interest to the beneficiary on the amount of the payment order from the day notice should have been given until the day the beneficiary learned of receipt of the payment order by the bank. No other damages are recoverable. Reasonable attorney’s fees are also recoverable if demand for interest is made and refused before an action is brought on the claim.
(c)    The right of a beneficiary to receive payment and damages as stated in subsection (a) of this section may not be varied by agreement or a funds-transfer system rule. The right of a beneficiary to be notified as stated in subsection (b) of this section may be varied by agreement of the beneficiary or by a funds-transfer system rule if the beneficiary is notified of the rule before initiation of the funds transfer.
2023 Maryland Statutes › Commercial Law › Title 4A - Funds Transfers › Subtitle 4 - Payment › Section 4A-406 - Payment by Originator to Beneficiary; Discharge of Underlying Obligation

(a)    Subject to §§ 4A-211(e) and 4A-405(d) and (e) of this title, the originator of a funds transfer pays the beneficiary of the originator’s payment order: (i) at the time a payment order for the benefit of the beneficiary is accepted by the beneficiary’s bank in the funds transfer; and (ii) in an amount equal to the amount of the order accepted by the beneficiary’s bank, but not more than the amount of the originator’s order.
(b)    If payment under subsection (a) of this section is made to satisfy an obligation, the obligation is discharged to the same extent discharge would result from payment to the beneficiary of the same amount in money, unless: (i) the payment under subsection (a) of this section was made by a means prohibited by the contract of the beneficiary with respect to the obligation; (ii) the beneficiary, within a reasonable time after receiving notice of receipt of the order by the beneficiary’s bank, notified the originator of the beneficiary’s refusal of the payment; (iii) funds with respect to the order were not withdrawn by the beneficiary or applied to a debt of the beneficiary; and (iv) the beneficiary would suffer a loss that could reasonably have been avoided if payment had been made by a means complying with the contract. If payment by the originator does not result in discharge under this section, the originator is subrogated to the rights of the beneficiary to receive payment from the beneficiary’s bank under § 4A-404(a) of this subtitle.
(c)    For the purpose of determining whether discharge of an obligation occurs under subsection (b) of this section, if the beneficiary’s bank accepts a payment order in an amount equal to the amount of the originator’s payment order less charges of 1 or more receiving banks in the funds transfer, payment to the beneficiary is deemed to be in the amount of the originator’s order unless upon demand by the beneficiary the originator does not pay the beneficiary the amount of the deducted charges.
(d)    Rights of the originator or of the beneficiary of a funds transfer under this section may be varied only by agreement of the originator and the beneficiary.