2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 2 - Issue and Acceptance of Payment Order › 4-A-209 - Acceptance of Payment Order.

Section 4-A-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
subsection  (1)  or  (2) of Section 4-A-405, 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withdrawn or used until receipt of payment from the sender of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 paragraph (a) or (b) of subsection
(1) of Section 4-A-403; 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  the bank has otherwise received full payment from
the sender, unless the order was rejected before that time or
is rejected within (i) one hour after that time, or (ii)  one
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
paragraph (b) or (c) of subsection (2) 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 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  cancelled
pursuant to subsection (2) of Section 4-A-211, the bank may recover from
the  beneficiary  any  payment received to the extent allowed by the law
governing mistake and restitution.