reglab/statecodes huggingface dataset:
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 3 - Collection of Items: Payor Banks › 4-303 - When Items Subject to Notice, Stop-Order, Legal Process or Setoff; Order in Which Items May Be Charged or Certified.

Section 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 bank has done  any  of  the
following:
(a) accepted or certified the item;
(b) paid the item in cash;
(c) settled  for the item without reserving a right to revoke the
settlement and  without  having  such  right  under  statute,
clearing house rule or agreement;
(d) completed  the  process  of posting the item to the indicated
account of the drawer, maker or other person  to  be  charged
therewith  or  otherwise has evidenced by examination of such
indicated account and by action its decision to pay the item;
or
(e) become  accountable  for  the  amount  of  the   item   under
subsection  (1)  (d)  of  Section  4--213  and Section 4--302
dealing with the payor bank's responsibility for late  return
of items.
(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 convenient to the bank.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 4 - Relationship Between Payor Bank and Its Customer › 4-401 - When Bank May Charge Customer's Account.

Section 4--401. When Bank May Charge Customer's Account.
(1) As against its customer, a bank may charge against his account any
item  which  is otherwise properly payable from that account even though
the charge creates an overdraft.
(2) A bank which in good faith makes payment to a  holder  may  charge
the indicated account of its customer according to
(a) the original tenor of his altered item; or
(b) the  tenor  of his completed item, even though the bank knows
the item has been completed unless the bank has  notice  that
the completion was improper.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 4 - Relationship Between Payor Bank and Its Customer › 4-402 - Bank's Liability to Customer for Wrongful Dishonor.

Section 4--402. Bank's Liability to Customer for Wrongful Dishonor.
A  payor bank is liable to its customer for damages proximately caused
  by the wrongful dishonor of an item. When the  dishonor  occurs  through
  mistake liability is limited to actual damages proved. If so proximately
  caused  and  proved  damages  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.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 4 - Relationship Between Payor Bank and Its Customer › 4-403 - Customer's Right to Stop Payment; Burden of Proof of Loss.

Section 4--403. Customer's  Right  to  Stop  Payment; Burden of Proof of
Loss.
(1) A customer may by order to his  bank  stop  payment  of  any  item
payable  for his account but the order must be received at such time and
in such manner as to afford the bank a reasonable opportunity to act  on
it prior to any action by the bank with respect to the item described in
Section 4--303.
(2) A remitter or payee of a cashier's check or certified check may by
order to the obligated bank stop payment of such a check, and a remitter
or  payee  of a teller's check may order the obligated bank to order the
payor bank to stop payment of such a check, at  any  time  after  ninety
days  from  the date of issuance of either a cashier's check or teller's
check, and date of certification of a certified check. The stop  payment
is  effective  if either the remitter or payee delivers to the obligated
bank at a time and in a manner affording a reasonable opportunity to act
before any of the actions described in Section 4--303 (1) are taken: (i)
a written order to stop payment, which  shall  describe  the  item  with
reasonable  certainty,  and  (ii)  an affidavit of the remitter or payee
containing an averment that the check  was  destroyed,  its  whereabouts
cannot  be determined, or it is in the wrongful possession of an unknown
person or a person that cannot be found or is not amenable to service of
process.
(3) An oral order is binding upon the bank only for fourteen  calendar
days  unless confirmed in writing within that period. A written order is
effective for only six months unless renewed in writing.
(4) The burden of establishing the fact and amount of  loss  resulting
from  the payment of an item contrary to a binding stop payment order is
on the customer, remitter or payee.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 4 - Relationship Between Payor Bank and Its Customer › 4-404 - Bank Not Obligated to Pay Check More Than Six Months Old.

Section 4--404. Bank  Not  Obligated  to  Pay Check More Than Six 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 six months after its date, but it may charge its customer's account
  for a payment made thereafter in good faith.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 4 - Relationship Between Payor Bank and Its Customer › 4-405 - Death or Incompetence of Customer.

Section 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 ten 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.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 4 - Relationship Between Payor Bank and Its Customer › 4-406 - Customer's Duty to Discover and Report Unauthorized Signature or Alteration.

Section 4--406. Customer's  Duty  to  Discover  and  Report Unauthorized
Signature or Alteration.
(1) When  a  bank  sends  to  its  customer  a  statement  of  account
accompanied  by items paid in good faith in support of the debit entries
or holds the statement and items pursuant to a request  or  instructions
of  its customer or otherwise in a reasonable manner makes the statement
and  items  available  to  the  customer,  the  customer  must  exercise
reasonable  care  and  promptness  to examine the statement and items to
discover his unauthorized signature or any alteration  on  an  item  and
must notify the bank promptly after discovery thereof.
(2)  If  the bank establishes that the customer failed with respect to
an item to comply with the duties imposed on the customer by  subsection
(1) the customer is precluded from asserting against the bank
(a) his  unauthorized  signature or any alteration on the item if
the bank also establishes that it suffered a loss  by  reason
of such failure; and
(b) an unauthorized signature or alteration by the same wrongdoer
on  any  other  item paid in good faith by the bank after the
first item and statement was available to the customer for  a
reasonable  period  not  exceeding fourteen calendar days and
before the bank receives notification from  the  customer  of
any such unauthorized signature or alteration.
(3) The preclusion under subsection (2) does not apply if the customer
establishes  lack of ordinary care on the part of the bank in paying the
item(s).
(4) Without regard to care or lack of care of either the  customer  or
the  bank  a  customer  who  does  not within one year from the time the
statement and items are made available to the customer (subsection  (1))
discover  and report his unauthorized signature or any alteration on the
face or back of the item or does not within three years from  that  time
discover  and  report  any  unauthorized  indorsement  is precluded from
asserting against the bank such unauthorized signature or indorsement or
such alteration.
(5) If under this section a payor bank has a valid defense  against  a
claim of a customer upon or resulting from payment of an item and waives
or  fails  upon  request  to  assert the defense the bank may not assert
against  any  collecting  bank  or  other  prior  party  presenting   or
transferring  the  item a claim based upon the unauthorized signature or
alteration giving rise to the customer's claim.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 4 - Relationship Between Payor Bank and Its Customer › 4-407 - Payor Bank's Right to Subrogation on Improper Payment.

Section 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 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
(a) of any holder in due course on the item against the drawer or
maker; and
(b) of  the  payee  or  any  other holder of the item against the
drawer or maker either on the item or under  the  transaction
out of which the item arose; and
(c) of  the drawer or maker against the payee or any other holder
of the item with respect to the transaction out of which  the
item arose.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 4 - Relationship Between Payor Bank and Its Customer › 4-408 - Rights and Liabilities of Remitter or Payee With Respect to Cashier's Check, Teller's Check and Certified Check.

Section 4--408. Rights and Liabilities of Remitter or Payee With Respect
to  Cashier's  Check,  Teller's  Check  and  Certified
Check.
(1) This section applies if  a  cashier's  check,  teller's  check  or
certified  check  is  not presented for payment on or before ninety days
from the date of issuance of a cashier's check or teller's check, or the
date of certification of a certified check.
(2) The remitter or payee that causes payment of  a  cashier's  check,
teller's  check  or  certified  check  to be stopped pursuant to Section
4--403 (2) engages that upon dishonor of the  check  and  any  necessary
notice  of  dishonor he will pay, subject to defenses, the amount of the
check to any subsequent holder or indorser who takes it up.
(3) When a stop payment order pursuant to Section 4--403  (2)  becomes
effective  the obligated bank shall refund the amount of the item to the
remitter or payee that issued the stop payment order, and shall have  no
further liability on the item.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 5 - Collection of Documentary Drafts › 4-501 - Handling of Documentary Drafts; Duty to Send for Presentment and to Notify Customer of Dishonor.

Section 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.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 5 - Collection of Documentary Drafts › 4-502 - Presentment of "On Arrival" Drafts.

Section 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.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 5 - Collection of Documentary Drafts › 4-503 - Responsibility of Presenting Bank for Documents and Goods; Report of Reasons for Dishonor; Referee in Case of Need.

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 Article 5 a bank
presenting a documentary draft
(a) must deliver the documents to the  drawee  on  acceptance  of  the
draft  if  it  is  payable  more  than  three  days  after  presentment;
otherwise, only on payment; and
(b) upon dishonor, either in the case of presentment for acceptance or
presentment for payment, may  seek  and  follow  instructions  from  any
referee  in  case  of  need designated in the draft or if the presenting
bank does not choose to utilize his services it must use  diligence  and
good  faith  to  ascertain  the  reason  for  dishonor,  must notify its
transferor of the dishonor and of the results of its effort to ascertain
the reasons therefor and must request instructions.
But the presenting bank is under no obligation  with  respect  to  goods
represented   by   the   documents   except  to  follow  any  reasonable
instructions seasonably received; it has a right  to  reimbursement  for
any  expense  incurred in following instructions and to prepayment of or
indemnity for such expenses.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 5 - Collection of Documentary Drafts › 4-504 - Privilege of Presenting Bank to Deal With Goods; Security Interest for Expenses.

Section 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.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 1 - Subject Matter and Definitions › 4-A-103 - Payment Order-Definitions.

Section 4-A-103. Payment Order-Definitions.
(1) In this article:
(a) "Payment  order"  means  an  instruction  of  a  sender  to a
receiving bank, transmitted  orally,  electronically,  or  in
writing,  to pay, or to cause another bank to pay, a fixed or
determinable amount of money to a beneficiary if:
(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 which otherwise is to  make
payment  to the beneficiary if the order does not provide for
payment to an account.
(d) "Receiving  bank"  means  the  bank  to  which  the  sender's
instruction is addressed.
(e) "Sender"  means  the  person  giving  the  instruction to the
receiving bank.
(2) If an instruction complying with paragraph (a) of  subsection  (1)
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.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 1 - Subject Matter and Definitions › 4-A-104 - Funds Transfer-Definitions.

Section 4-A-104. Funds Transfer-Definitions.
In this article:
(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.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 1 - Subject Matter and Definitions › 4-A-105 - Other Definitions.

Section 4-A-105.  Other Definitions.
(1)  In this Article:
(a)   "Authorized  account" means a deposit account of a customer
in a bank designated by the customer as a source  of  payment
of  payment  orders issued by the customer to the bank.  If a
customer does not so designate an account, any account of the
customer is an authorized account if  payment  of  a  payment
order   from   that   account  is  not  inconsistent  with  a
restriction on the use of that account.
(b)  "Bank" means a person engaged in the business of banking and
includes a savings bank, savings and loan association, credit
union, and trust company.  A branch or separate office  of  a
bank is a separate bank for purposes of this article.
(c)   "Customer"  means  a  person,  including  a bank, having an
account with a bank or from whom a bank has agreed to receive
payment orders.
(d)  "Funds-transfer business day" of a receiving bank means  the
part of a day during which the receiving bank is open for the
receipt,  processing,  and  transmittal of payment orders and
cancellations and amendments of payment orders.
(e)  "Funds-transfer  system"  means  a  wire  transfer  network,
automated  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.
(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 (subsection (b)(8) of section 1--201).
(2)  Other definitions applying to this Article and  the  sections  in
which they appear are:
"Acceptance"                  Section 4-A-209
"Beneficiary"                 Section 4-A-103
"Beneficiary's bank"          Section 4-A-103
"Executed"                    Section 4-A-301
"Execution date"              Section 4-A-301
"Funds transfer"              Section 4-A-104
"Funds-transfer system rule"  Section 4-A-501
"Intermediary bank"           Section 4-A-104
"Originator"                  Section 4-A-104
"Originator's bank"           Section 4-A-104
"Payment by beneficiary's
bank to beneficiary"         Section 4-A-405
"Payment by originator
to beneficiary"             Section 4-A-406
"Payment by sender to
receiving bank"             Section 4-A-403
"Payment date"                Section 4-A-401
"Payment order"               Section 4-A-103
"Receiving bank"              Section 4-A-103
"Security procedure"          Section 4-A-201
"Sender"                      Section 4-A-103
(3) The following definitions in Article 4 apply to this Article:
"Clearing house"              Section 4-104
"Item"                        Section 4-104
"Suspends payments"           Section 4-104
(4)  In addition Article 1 contains general definitions and principles
of construction and interpretation applicable throughout this Article.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 1 - Subject Matter and Definitions › 4-A-106 - Time Payment Order Is Received.

Section 4-A-106. Time Payment Order is Received.
(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 Section 1--202. A receiving bank may fix a
cut-off time or times on a funds-transfer business day for  the  receipt
and  processing  of  payment  orders  and  communications  cancelling or
amending payment orders. Different cut-off times may  apply  to  payment
orders,  cancellations,  or  amendments,  or  to different categories of
payment orders, cancellations, or amendments. A cut-off time  may  apply
to  senders  generally or different cut-off times may apply to different
senders  or  categories  of  payment  orders.  If  a  payment  order  or
communication  cancelling  or amending a payment order is received after
the close of a funds-transfer business  day  or  after  the  appropriate
cut-off  time  on  a funds-transfer business day, the receiving bank may
treat the payment order or communication as received at the  opening  of
the next funds-transfer business day.
(2)  If  this  Article  refers to an execution date or payment date or
states a day on which a receiving bank is required to take  action,  and
the date or day does not fall on a funds-transfer business day, the next
day  that is a funds-transfer business day is treated as the date or day
stated, unless the contrary is stated in this Article.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 1 - Subject Matter and Definitions › 4-A-107 - Federal Reserve Regulations and Operating Circulars.

Section 4-A-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   Article  to  the  extent  of  the
  inconsistency.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 1 - Subject Matter and Definitions › 4-A-108 - Relationship to Electronic Fund Transfer Act.

Section 4-A-108. Relationship to Electronic Fund Transfer Act.
(1) Except as provided in subsection (2) of this section, this Article
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.
(2)  This Article shall apply to a funds transfer that is a remittance
transfer as defined in the Electronic Fund Transfer Act (15 U.S.C.  Sec.
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. Sec. 1693a) as amended from time to time.
(3) In a funds transfer to which this Article applies, in the event of
an  inconsistency between an applicable provision of this Article and an
applicable provision of the Electronic Fund Transfer Act, the  provision
of  the  Electronic  Fund  Transfer  Act  governs  to  the extent of the
inconsistency.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 2 - Issue and Acceptance of Payment Order › 4-A-201 - Security Procedure.

Section 4-A-201. Security Procedure.
"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. 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.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 2 - Issue and Acceptance of Payment Order › 4-A-202 - Authorized and Verified Payment Orders.

Section 4-A-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 (a) the security procedure is a
commercially   reasonable   method   of   providing   security   against
unauthorized  payment  orders,  and (b) 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 deemed 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 its name  and
accepted by the bank in compliance with the security procedure chosen by
the customer.
(4)  The  term "sender" in this Article 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 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 paragraph (a) of
subsection (l) of Section 4-A-203, rights and obligations arising  under
this section or Section 4-A-203 may not be varied by agreement.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 2 - Issue and Acceptance of Payment Order › 4-A-203 - Unenforceability of Certain Verified Payment Orders.

Section 4-A-203. Unenforceability of Certain Verified Payment Orders.
(1)  If  an  accepted  payment  order  is not, under subsection (1) of
Section 4-A-202, an authorized order of a customer identified as sender,
but is effective as an order of the customer pursuant to subsection  (2)
of Section 4-A-202, the following rules apply:
(a) By  express  written  agreement, the receiving bank may limit
the extent to which it  is  entitled  to  enforce  or  retain
payment of the payment order.
(b) The  receiving  bank  is  not  entitled  to enforce or retain
payment of the payment order if the customer proves that  the
order was not caused, directly or indirectly, by a person (i)
entrusted  at  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.
(2) This section applies to amendments of payment orders to  the  same
extent it applies to payment orders.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 2 - Issue and Acceptance of Payment Order › 4-A-204 - Refund of Payment and Duty of Customer to Report With Respect to Unauthorized Payment Order.

Section 4-A-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 which is (a) not authorized and not effective as
the order of the customer under Section 4-A-202, or (b) not enforceable,
in whole or in part, against the customer  under  Section  4-A-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 ninety 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  subsection  (b)  of  Section 1--302, but the obligation of a
receiving bank to refund payment as stated in  subsection  (b)  may  not
otherwise be varied by agreement.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 2 - Issue and Acceptance of Payment Order › 4-A-205 - Erroneous Payment Orders.

Section 4-A-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  (i)
erroneously  instructed  payment  to  a  beneficiary not intended by the
sender, (ii) erroneously instructed payment in an  amount  greater  than
the  amount  intended  by  the  sender,  or  (iii)  was  an  erroneously
transmitted duplicate of a payment order previously sent by the  sender,
the following rules apply:
(a) If  the  sender  proves that the sender or a person acting on
behalf of the sender pursuant  to  Section  4-A-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 paragraphs (b) and (c).
(b) If the funds  transfer  is  completed  on  the  basis  of  an
erroneous  payment  order described in clause (i) or (iii) of
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 described in clause (ii) of 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 (i) the sender of  an  erroneous  payment  order  described  in
subsection  (1) is not obliged to pay all or part of the order, and (ii)
the sender receives notification from the receiving bank that the  order
was  accepted  by the bank or that the sender's account was debited with
respect to the order, the sender has a duty to exercise  ordinary  care,
on  the  basis  of  information available to the sender, to discover the
error with respect to the order and to advise the bank of  the  relevant
facts  within  a  reasonable  time, not exceeding ninety 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.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 2 - Issue and Acceptance of Payment Order › 4-A-206 - Transmission of Payment Order Through Funds-Transfer or Other Communication System.

Section 4-A-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 deemed to  be  an  agent  of  the
sender  for  the  purpose of transmitting the payment order to the bank.
If there is a  discrepancy  between  the  terms  of  the  payment  order
transmitted to the system and the terms of the payment order transmitted
by  the system to the bank, the terms of the payment order of the sender
are those transmitted by the system. This section does not  apply  to  a
funds-transfer system of the Federal Reserve Banks.
(2)  This  section  applies to cancellations and amendments of payment
orders to the same extent it applies to payment orders.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 2 - Issue and Acceptance of Payment Order › 4-A-208 - Misdescription of Intermediary Bank or Beneficiary's Bank.

Section 4-A-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.
(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.
(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
paragraph (a) of subsection (2), 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  paragraph  (a)  of  subsection (1) of
Section 4-A-302.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 2 - Issue and Acceptance of Payment Order › 4-A-210 - Rejection of Payment Order.

Section 4-A-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, (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.
(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  cancelled  pursuant  to
subsection  (4) of Section 4-A-211 or the day the sender receives notice
or learns that the order was not executed, counting the final day of the
period as an elapsed day. If the withdrawable credit balance during that
period falls below the amount of the order, the amount  of  interest  is
reduced accordingly.
(3)  If  a  receiving  bank  suspends payments, all unaccepted payment
orders issued to it are deemed rejected at the time  the  bank  suspends
payments.
(4)  Acceptance  of a payment order precludes a later rejection of the
order. Rejection of a payment order precludes a later acceptance of  the
order.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 2 - Issue and Acceptance of Payment Order › 4-A-212 - Liability and Duty of Receiving Bank Regarding Unaccepted Payment Order.

Section 4-A-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 Article,
  but does not otherwise have any duty  to  accept  a  payment  order  or,
  before  acceptance,  to  take any action, or refrain from taking action,
  with respect to the order except as  provided  in  this  Article  or  by
  express  agreement.  Liability  based  on  acceptance  arises  only when
  acceptance occurs as stated in Section 4-A-209, and liability is limited
  to that provided in this Article. A receiving bank is not the  agent  of
  the  sender  or  beneficiary  of the payment order it accepts, or of any
  other party to the funds transfer, and the bank  owes  no  duty  to  any
  party  to  the  funds  transfer except as provided in this Article or by
  express agreement.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 3 - Execution of Sender's Payment Order by Receiving Bank › 4-A-301 - Execution and Execution Date.

Section 4-A-301. Execution and Execution Date.
(1) A payment order is "executed" by the receiving bank when it issues
a  payment order intended to carry out the payment order received by the
bank. A payment order received by the beneficiary's bank can be accepted
but cannot be executed.
(2) "Execution date" of a payment order means the  day  on  which  the
receiving  bank  may  properly issue a payment order in execution of the
sender's order. The execution date may be determined by  instruction  of
the sender but cannot be earlier than the day the order is received and,
unless  otherwise  determined,  is the day the order is received. If the
sender's instruction states a payment date, the execution  date  is  the
payment  date  or  an  earlier  date  on  which  execution is reasonably
necessary to allow payment to the beneficiary on the payment date.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 3 - Execution of Sender's Payment Order by Receiving Bank › 4-A-303 - Erroneous Execution of Payment Order.

Section 4-A-303. Erroneous Execution of Payment Order.
(1) A receiving bank that (i) 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 (ii) 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 subsection (3) of Section
4-A-402 if that subsection is otherwise satisfied. The bank is  entitled
to  recover  from  the  beneficiary  of  the  erroneous order the excess
payment received to the extent allowed by the law governing mistake  and
restitution.
(2)  A receiving bank that executes the payment order of the sender by
issuing a payment order in  an  amount  less  than  the  amount  of  the
sender's  order  is  entitled  to  payment of the amount of the sender's
order under subsection (3) of Section 4-A-402 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. If the  error  is  not  corrected,  the  issuer  of  the
erroneous order is entitled to receive or retain payment from the sender
of  the  order  it  accepted  only  to  the  extent of the amount of the
erroneous order. This subsection does not apply if  the  receiving  bank
executes  the  sender's  payment  order by issuing a payment order in an
amount less than the amount of the sender's order  for  the  purpose  of
obtaining  payment  of its charges for services and expenses pursuant to
instruction of the sender.
(3) If a receiving bank executes the payment order of  the  sender  by
issuing  a payment order to a beneficiary different from the beneficiary
of the sender's order and the funds transfer is completed on  the  basis
of  that  error,  the  sender  of the payment order that was erroneously
executed and all previous senders in the funds transfer are not  obliged
to pay the payment orders they issued. The issuer of the erroneous order
is  entitled  to  recover  from the beneficiary of the order the payment
received to  the  extent  allowed  by  the  law  governing  mistake  and
restitution.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 3 - Execution of Sender's Payment Order by Receiving Bank › 4-A-304 - Duty of Sender to Report Erroneously Executed Payment Order.

Section 4-A-304. Duty  of  Sender to Report Erroneously Executed Payment
Order.
If the sender of a payment  order  that  is  erroneously  executed  as
  stated  in Section 4-A-303 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 ninety days  after
  the notification from the bank was received by the sender. If the sender
  fails  to  perform that duty, the bank is not obliged to pay interest on
  any amount refundable to the sender  under  subsection  (4)  of  Section
  4-A-402  for  the  period before the bank learns of the execution error.
  The bank is not entitled to any recovery from the sender on account of a
  failure by the sender to perform the duty stated in this section.