§ 554.12209 — Acceptance of payment order

Iowa § 554.12209

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 554: UNIFORM COMMERCIAL CODE

Text

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 pays the beneficiary as stated in section 554.12405, subsection 1 or 2,
or 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the order or that funds with respect to the order may not be withdrawn or used until receipt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 section 554.12403, subsection 1, paragraph “a” or “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
withdrawablecreditbalanceinanauthorizedaccountofthesenderorthebankhasotherwise
received full payment from the sender, unless the order was rejected before that time or is
rejectedwithinonehourafterthattime,oronehouraftertheopeningofthenextbusinessday
of the sender following the payment date if the 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 shall 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 the day that notice is received 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, paragraph “b” or “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 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
paymentdateandthepaymentorderissubsequentlycanceledpursuanttosection554.12211,
subsection 2, the bank may recover from the beneficiary any payment received to the extent
allowed by the law governing mistake and restitution.