reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4. Uniform Commercial Code Bank Deposits and Collections › Part 2. Collection of Items Depositary and Collecting Banks › 30-4-216. Encoding and retention warranties

30-4-216. Encoding and retention warranties.
(1) A person that encodes information on or with respect to an item after issue warrants to any subsequent collecting bank and to the payor bank or other payor that the information is correctly encoded. If the customer of a depositary bank encodes, that bank also makes the warranty.
(2) A person that undertakes to retain an item pursuant to a truncation agreement warrants to any subsequent collecting bank and to the payor bank or other payor that retention and presentment of the item comply with the truncation agreement. If a customer of a depositary bank undertakes to retain an item, that bank also makes this warranty.
(3) A person to whom warranties are made under this section and who took the item in good faith may recover from the warrantor as damages for breach of warranty an amount equal to the loss suffered as a result of the breach plus expenses and loss of interest incurred as a result of the breach.
History: En. Sec. 172, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4. Uniform Commercial Code Bank Deposits and Collections › Part 3. Collection of Items -- Payor Banks › 30-4-301. Deferred posting -- recovery of payment by return of items -- time of dishonor -- return of items by payor bank

30-4-301. Deferred posting -- recovery of payment by return of items -- time of dishonor -- return of items by payor bank.
(1) If a payor bank settles for a demand item other than a documentary draft presented otherwise than for immediate payment over the counter before midnight of the banking day of receipt, the payor bank may revoke the settlement and recover any settlement if before it has paid the item in cash (subsection (1)(a) of 30-4-213) and before its midnight deadline it:
(a) returns the item; or
(b) sends written notice of dishonor or nonpayment if the item is unavailable for return.
(2) If a demand item is received by a payor bank for credit on its books it may return such item or send notice of dishonor and may revoke any credit given or recover the amount thereof withdrawn by its customer, if it acts within the time limit and in the manner specified in the preceding subsection.
(3) Unless previous notice of dishonor has been sent an item is dishonored at the time when for purposes of dishonor it is returned or notice sent in accordance with this section.
(4) An item is returned:
(a) as to an item presented through a clearinghouse, when it is delivered to the presenting or last collecting bank or to the clearinghouse or is sent or delivered in accordance with clearinghouse rules; or
(b) in all other cases, when it is sent or delivered to the bank's customer or transferor or pursuant to instructions.
History: En. Sec. 4-301, Ch. 264, L. 1963; R.C.M. 1947, 87A-4-301; amd. Sec. 180, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4. Uniform Commercial Code Bank Deposits and Collections › Part 3. Collection of Items -- Payor Banks › 30-4-302. Payor bank's responsibility for late return of item

30-4-302. Payor bank's responsibility for late return of item.
(1) If an item is presented to and received by a payor bank the bank is accountable for the amount of:
(a) a demand item, other than a documentary draft, whether properly payable or not if the bank, in any case in which it is not also the depositary bank, retains the item beyond midnight of the banking day of receipt without settling for it or, regardless of whether it is also the depositary bank, does not settle for or return the item or send notice of dishonor until after its midnight deadline; or
(b) any other properly payable item unless within the time allowed for acceptance or payment of that item the bank either accepts or pays the item or returns it and accompanying documents.
(2) The liability of a payor bank to pay an item pursuant to subsection (1) is subject to defenses based on breach of a presentment warranty (30-4-215) or proof that the person seeking enforcement of the liability presented or transferred the item for the purpose of defrauding the payor bank.
History: En. Sec. 4-302, Ch. 264, L. 1963; R.C.M. 1947, 87A-4-302; amd. Sec. 75, Ch. 370, L. 1987; amd. Sec. 181, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4. Uniform Commercial Code Bank Deposits and Collections › Part 3. Collection of Items -- Payor Banks › 30-4-303. When items subject to notice, stop order, legal process or setoff -- order in which items may be charged or certified

30-4-303. When items subject to notice, stop order, legal process or setoff -- order in which items may be charged or certified.
(1) Any knowledge, notice, or stop order received by, legal process served upon or setoff exercised by a payor bank, whether or not effective under other rules of law to terminate, suspend, or modify the bank's right or duty to pay an item or to charge its customer's account for the item, comes too late to so terminate, suspend, or modify such right or duty if the knowledge, notice, stop order, or legal process is received or served and a reasonable time for the bank to act thereon expires or the setoff is exercised after the earliest of the following:
(a) the bank accepts or certifies the item;
(b) the bank pays the item in cash;
(c) the bank settles for the item without having a right to revoke the settlement under statute, clearinghouse rule, or agreement;
(d) the bank becomes accountable for the amount of the item under 30-4-302 dealing with the payor bank's responsibility for late return of items; or
(e) with respect to checks, a cutoff hour no earlier than 1 hour after the opening of the next banking day after the banking day on which the bank received the check and no later than the close of that banking day or, if no cutoff hour is fixed, the close of the next banking day after the banking day on which the bank received the check.
(2) Subject to the provisions of subsection (1) items may be accepted, paid, certified, or charged to the indicated account of its customer in any order.
History: En. Sec. 4-303, Ch. 264, L. 1963; R.C.M. 1947, 87A-4-303; amd. Sec. 182, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4. Uniform Commercial Code Bank Deposits and Collections › Part 4. Relationship Between Payor Bank and Its Customer › 30-4-401. When bank may charge customer's account

30-4-401. When bank may charge customer's account.
(1) A bank may charge against the account of a customer an item that is properly payable from that account even though the charge creates an overdraft. An item is properly payable if it is authorized by the customer and is in accordance with any agreement between the customer and the bank.
(2) A customer is not liable for the amount of an overdraft if the customer neither signed the item nor benefited from the proceeds of the item.
(3) A bank may charge against the account of a customer a check that is otherwise properly payable from the account, even though payment was made before the date of the check, unless the customer has given notice to the bank of the postdating describing the check with reasonable certainty. The notice will be effective for the period stated in 30-4-403(2) for stop orders and must be received at a time and in a manner as to afford the bank a reasonable opportunity to act on it before any action by the bank with respect to the check described in 30-4-303. If a bank charges against the account of a customer a check before the date stated in the notice of postdating, the bank is liable for damages for the loss resulting from its act. The loss may include damages for dishonor of subsequent items pursuant to 30-4-402.
(4) A bank that in good faith makes payment to a holder may charge the indicated account of its customer according to:
(a) the original terms of the altered item; or
(b) the terms of the completed item, even though the bank knows the item has been completed unless the bank has notice that the completion was improper.
History: En. Sec. 4-401, Ch. 264, L. 1963; R.C.M. 1947, 87A-4-401; amd. Sec. 183, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4. Uniform Commercial Code Bank Deposits and Collections › Part 4. Relationship Between Payor Bank and Its Customer › 30-4-402. Bank's liability to customer for wrongful dishonor -- time of determining insufficiency of account

30-4-402. Bank's liability to customer for wrongful dishonor -- time of determining insufficiency of account.
(1) Except as otherwise provided in this chapter, a payor bank wrongfully dishonors an item if it dishonors an item that is properly payable, but a bank may dishonor an item that would create an overdraft unless it has agreed to pay the overdraft.
(2) A payor bank is liable to its customer for damages proximately caused by the wrongful dishonor of an item. Liability is limited to actual damages proved and may include damages for an arrest or prosecution of the customer or other consequential damages. Whether any consequential damages are proximately caused by the wrongful dishonor is a question of fact to be determined in each case.
(3) A payor bank's determination of the customer's account balance on which a decision to dishonor for insufficiency of available funds is based may be made at any time between the time the item is received by the payor bank and the time that the payor bank returns the item or gives notice in lieu of return, and no more than one such determination need be made. If, at the election of the payor bank, a subsequent balance determination is made for the purpose of reevaluating the bank's decision to dishonor the item, the account balance at that time is determinative of whether a dishonor for insufficiency of available funds is wrongful.
History: En. Sec. 4-402, Ch. 264, L. 1963; R.C.M. 1947, 87A-4-402; amd. Sec. 184, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4. Uniform Commercial Code Bank Deposits and Collections › Part 4. Relationship Between Payor Bank and Its Customer › 30-4-403. Customer's right to stop payment -- burden of proof of loss

30-4-403. Customer's right to stop payment -- burden of proof of loss.
(1) Subject to 27-1-717, a customer or any person authorized to draw on the account if there is more than one may stop payment of any item drawn on the customer's account or close the account by an order to the bank describing the item or account with reasonable certainty and received by the bank at a time and in a manner as to afford the bank a reasonable opportunity to act on it before any action by the bank with respect to the item described in 30-4-303. If the signature of more than one person is required to draw on an account, any of these persons may stop payment or close the account.
(2) A stop order is effective for 6 months after the time it is received, but it lapses after 14 calendar days if the original order was oral and was not confirmed in writing within that period. A stop order may be renewed for additional 6-month periods by a writing given to the bank within a period during which the stop order is effective.
(3) The burden of establishing the fact and amount of loss resulting from the payment of an item contrary to a binding stop payment order or order to close an account is on the customer. The loss from payment of an item contrary to a binding stop payment order may include damages for dishonor of subsequent items pursuant to 30-4-402.
History: En. Sec. 4-403, Ch. 264, L. 1963; R.C.M. 1947, 87A-4-403; amd. Sec. 2, Ch. 557, L. 1985; amd. Sec. 185, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4. Uniform Commercial Code Bank Deposits and Collections › Part 4. Relationship Between Payor Bank and Its Customer › 30-4-404. Bank not obligated to pay check more than 6 months old

30-4-404. Bank not obligated to pay check more than 6 months old.
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: En. Sec. 4-404, Ch. 264, L. 1963; R.C.M. 1947, 87A-4-404.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4. Uniform Commercial Code Bank Deposits and Collections › Part 4. Relationship Between Payor Bank and Its Customer › 30-4-405. Death or incompetence of customer

30-4-405. Death or incompetence of customer.
(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: En. Sec. 4-405, Ch. 264, L. 1963; R.C.M. 1947, 87A-4-405.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4. Uniform Commercial Code Bank Deposits and Collections › Part 4. Relationship Between Payor Bank and Its Customer › 30-4-407. Payor bank's right to subrogation on improper payment

30-4-407. Payor bank's right to subrogation on improper payment.
If a payor bank has paid an item over the stop payment order of the drawer or maker, 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 shall be subrogated to the rights:
(1) of any holder in due course on the item against the drawer or maker; and
(2) 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; and
(3) 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: En. Sec. 4-407, Ch. 264, L. 1963; R.C.M. 1947, 87A-4-407; amd. Sec. 187, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4. Uniform Commercial Code Bank Deposits and Collections › Part 5. Collection of Documentary Drafts › 30-4-501. Handling of documentary drafts -- duty to send for presentment and to notify customer of dishonor

30-4-501. Handling of documentary drafts -- duty to send for presentment and to notify customer of dishonor.
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: En. Sec. 4-501, Ch. 264, L. 1963; R.C.M. 1947, 87A-4-501.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4. Uniform Commercial Code Bank Deposits and Collections › Part 5. Collection of Documentary Drafts › 30-4-502. Presentment of "on arrival" drafts

30-4-502. Presentment of "on arrival" drafts.
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: En. Sec. 4-502, Ch. 264, L. 1963; R.C.M. 1947, 87A-4-502.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4. Uniform Commercial Code Bank Deposits and Collections › Part 5. Collection of Documentary Drafts › 30-4-503. Responsibility of presenting bank for documents and goods -- report of reasons for dishonor -- referee in case of need

30-4-503. Responsibility of presenting bank for documents and goods -- report of reasons for dishonor -- referee in case of need.
(1) Unless otherwise instructed and except as provided in chapter 5, a bank presenting a documentary draft:
(a) shall 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 the referee's services, it shall use diligence and good faith to ascertain the reason for dishonor, shall notify its transferor of the dishonor and of the results of its effort to ascertain the reasons therefor, and shall request instructions.
(2) 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.
History: En. Sec. 4-503, Ch. 264, L. 1963; R.C.M. 1947, 87A-4-503; amd. Sec. 188, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4. Uniform Commercial Code Bank Deposits and Collections › Part 5. Collection of Documentary Drafts › 30-4-504. Privilege of presenting bank to deal with goods -- security interest for expenses

30-4-504. Privilege of presenting bank to deal with goods -- security interest for expenses.
(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: En. Sec. 4-504, Ch. 264, L. 1963; R.C.M. 1947, 87A-4-504.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4A. Uniform Commercial Code Funds Transfers › Part 1. Subject Matter and Definitions › 30-4A-101. Short title

30-4A-101. Short title.
This chapter may be cited as Uniform Commercial Code--Funds Transfers.
History: En. Sec. 189, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4A. Uniform Commercial Code Funds Transfers › Part 1. Subject Matter and Definitions › 30-4A-102. Subject matter

30-4A-102. Subject matter.
Except as otherwise provided in 30-4A-108, this chapter applies to funds transfers defined in 30-4A-104.
History: En. Sec. 190, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4A. Uniform Commercial Code Funds Transfers › Part 1. Subject Matter and Definitions › 30-4A-103. Payment order -- definitions

30-4A-103. Payment order -- definitions.
(1) In this chapter, the following definitions apply:
(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:
(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.
(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 that 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 one 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: En. Sec. 191, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4A. Uniform Commercial Code Funds Transfers › Part 1. Subject Matter and Definitions › 30-4A-104. Funds transfer -- definitions

30-4A-104. Funds transfer -- definitions.
In this chapter, the following definitions apply:
(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 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 the originator's bank or the beneficiary's bank.
(3) "Originator" means the sender of the first payment order in a funds transfer.
(4) "Originator's bank" means:
(a) the receiving bank to which the payment order of the originator is issued if the originator is not a bank; or
(b) the originator if the originator is a bank.
History: En. Sec. 192, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4A. Uniform Commercial Code Funds Transfers › Part 1. Subject Matter and Definitions › 30-4A-105. Other definitions

30-4A-105. Other definitions.
(1) In this chapter, the following definitions apply:
(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 chapter.
(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) "Good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing.
(g) "Prove", with respect to a fact, means to meet the burden of establishing the fact (30-1-201(2)(i)).
(2) Other definitions applying to this chapter and the sections in which they appear are:
"Acceptance". 30-4A-209.
"Beneficiary". 30-4A-103.
"Beneficiary's bank". 30-4A-103.
"Executed". 30-4A-301.
"Execution date". 30-4A-301.
"Funds transfer". 30-4A-104.
"Funds-transfer system rule". 30-4A-501.
"Intermediary bank". 30-4A-104.
"Originator". 30-4A-104.
"Originator's bank". 30-4A-104.
"Payment by beneficiary's bank to beneficiary". 30-4A-405.
"Payment by originator to beneficiary". 30-4A-406.
"Payment by sender to receiving bank". 30-4A-403.
"Payment date". 30-4A-401.
"Payment order". 30-4A-103.
"Receiving bank". 30-4A-103.
"Security procedure". 30-4A-201.
"Sender". 30-4A-103.
(3) The following definitions in chapter 4 apply to this chapter:
"Clearinghouse". 30-4-104.
"Item". 30-4-104.
"Suspends payments". 30-4-104.
(4) In addition, chapter 1 contains general definitions and principles of construction and interpretation applicable throughout this chapter.
History: En. Sec. 193, Ch. 410, L. 1991; amd. Sec. 32, Ch. 575, L. 2005.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4A. Uniform Commercial Code Funds Transfers › Part 1. Subject Matter and Definitions › 30-4A-106. Time payment order is received

30-4A-106. Time payment order is received.
(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 30-1-210. 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 canceling or amending payment orders. Different cutoff times may apply to payment orders, cancellations, or amendments or to different categories of payment orders, cancellations, or amendments. A cutoff time may apply to senders generally or different cutoff 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 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.
(2) If this chapter refers to an execution date or payment date or state 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 chapter.
History: En. Sec. 194, Ch. 410, L. 1991; amd. Sec. 33, Ch. 575, L. 2005.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4A. Uniform Commercial Code Funds Transfers › Part 1. Subject Matter and Definitions › 30-4A-107. Federal reserve regulations and operating circulars

30-4A-107. Federal reserve regulations and operating circulars.
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 chapter to the extent of the inconsistency.
History: En. Sec. 195, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4A. Uniform Commercial Code Funds Transfers › Part 1. Subject Matter and Definitions › 30-4A-108. Relationship to Electronic Fund Transfer Act

30-4A-108. Relationship to Electronic Fund Transfer Act.
(1) Except as provided in subsection (2), this chapter 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.
(2) This chapter applies to a funds transfer that is a remittance transfer as defined in the Electronic Fund Transfer Act, 15 U.S.C. 1693o-1, unless the remittance transfer is an electronic fund transfer as defined in the Electronic Fund Transfer Act, 15 U.S.C. 1693a.
(3) In a funds transfer to which this chapter applies, in the event of an inconsistency between an applicable provision of this chapter 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.
History: En. Sec. 196, Ch. 410, L. 1991; amd. Sec. 1, Ch. 71, L. 2013.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4A. Uniform Commercial Code Funds Transfers › Part 2. Issue and Acceptance of Payment Order › 30-4A-201. Security procedure

30-4A-201. Security procedure.
"Security procedure" means a procedure established by agreement of a customer and a receiving bank for the purpose of verifying that a payment order or communication amending or canceling a payment order is that of the customer or detecting error in the transmission or 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: En. Sec. 197, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4A. Uniform Commercial Code Funds Transfers › Part 2. Issue and Acceptance of Payment Order › 30-4A-202. Authorized and verified payment orders

30-4A-202. Authorized and verified payment orders.
(1) 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.
(2) 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 the security procedure is a commercially reasonable method of providing security against unauthorized payment orders and 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. 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.
(3) 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. A security procedure is considered to be commercially reasonable if:
(a) 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
(b) the customer expressly agreed in writing to be bound by any payment order, whether or not authorized, issued in the customer's name and accepted by the bank in compliance with the security procedure chosen by the customer.
(4) The term "sender" in this chapter includes the customer in whose name a payment order is issued if the order is the authorized order of the customer under subsection (1) or if it is effective as the order of the customer under subsection (2).
(5) This section applies to amendments and cancellations of payment orders to the same extent it applies to payment orders.
(6) Except as provided in this section and in 30-4A-203(1)(a), rights and obligations arising under this section or 30-4A-203 may not be varied by agreement.
History: En. Sec. 198, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4A. Uniform Commercial Code Funds Transfers › Part 2. Issue and Acceptance of Payment Order › 30-4A-203. Unenforceability of certain verified payment orders

30-4A-203. Unenforceability of certain verified payment orders.
(1) If an accepted payment order is not, under 30-4A-202(1), an authorized order of a customer identified as sender, but is effective as an order of the customer pursuant to 30-4A-202(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) (i) 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:
(A) entrusted at any time with duties to act for the customer with respect to payment orders or the security procedure; or
(B) 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.
(ii) 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: En. Sec. 199, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4A. Uniform Commercial Code Funds Transfers › Part 2. Issue and Acceptance of Payment Order › 30-4A-204. Refund of payment and duty of customer to report with respect to unauthorized payment order

30-4A-204. Refund of payment and duty of customer to report with respect to unauthorized payment order.
(1) If a receiving bank accepts a payment order issued in the name of its customer as sender that is not authorized and not effective as the order of the customer under 30-4A-202 or not enforceable, in whole or in part, against the customer under 30-4A-203, 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 30-1-204(1), but the obligation of a receiving bank to refund payment as stated in subsection (1) may not otherwise be varied by agreement.
History: En. Sec. 200, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4A. Uniform Commercial Code Funds Transfers › Part 2. Issue and Acceptance of Payment Order › 30-4A-205. Erroneous payment orders

30-4A-205. Erroneous payment orders.
(1) If an accepted payment order was transmitted pursuant to a security procedure for the detection of error and the payment order erroneously instructed payment to a beneficiary not intended by the sender, erroneously instructed payment in an amount greater than the amount intended by the sender, or 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 30-4A-206 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 subsections (1)(b) and (1)(c).
(b) Except as provided in subsection (1)(c), if the funds transfer is completed on the basis of an erroneous payment order described in subsection (1), 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 erroneously instructing payment in an amount greater than the amount intended by the sender, as described in subsection (1), 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 the sender of an erroneous payment order described in subsection (1) is not obliged to pay all or part of the order and 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: En. Sec. 201, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4A. Uniform Commercial Code Funds Transfers › Part 2. Issue and Acceptance of Payment Order › 30-4A-206. Transmission of payment order through funds-transfer or other communication system

30-4A-206. Transmission of payment order through funds-transfer or other communication system.
(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 considered 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: En. Sec. 202, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4A. Uniform Commercial Code Funds Transfers › Part 2. Issue and Acceptance of Payment Order › 30-4A-208. Misdescription of intermediary bank or beneficiary's bank

30-4A-208. Misdescription of intermediary bank or beneficiary's bank.
(1) This subsection applies to a payment order identifying an intermediary bank or the beneficiary's bank only by an identifying number as follows:
(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) 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 as follows:
(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 30-4A-302(1)(a).
History: En. Sec. 204, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4A. Uniform Commercial Code Funds Transfers › Part 2. Issue and Acceptance of Payment Order › 30-4A-209. Acceptance of payment order

30-4A-209. Acceptance of payment order.
(1) Subject to subsection (4), a receiving bank other than the beneficiary's bank accepts a payment order when it executes the order.
(2) Subject to subsections (3) and (4), a beneficiary's bank accepts a payment order at the earliest of the following times:
(a) when the bank:
(i) pays the beneficiary as stated in 30-4A-405(1) or (2); 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;
(b) when the bank receives payment of the entire amount of the sender's order pursuant to 30-4A-403(1)(a) or (1)(b); or
(c) 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 if the bank has otherwise received full payment from the sender, unless the order was rejected before that time or is rejected within 1 hour after that time or 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.
(3) Acceptance of a payment order cannot occur before the order is received by the receiving bank. Acceptance does not occur under subsection (2)(b) or (2)(c) 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.
(4) 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 until the execution date if the bank is not the beneficiary's bank. 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 canceled pursuant to 30-4A-211(2), the bank may recover from the beneficiary any payment received to the extent allowed by the law governing mistake and restitution.
History: En. Sec. 205, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 4A. Uniform Commercial Code Funds Transfers › Part 2. Issue and Acceptance of Payment Order › 30-4A-210. Rejection of payment order

30-4A-210. Rejection of payment order.
(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:
(a) any means complying with the agreement is reasonable; and
(b) 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 30-4A-211(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 considered 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: En. Sec. 206, Ch. 410, L. 1991.