This text of Indiana § 26-1-4.1-209 (Acceptance of payment order) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
(a)Subject to subsection (d), a receiving
bank other than the beneficiary's bank accepts a payment order when
it executes the order.
(b)Subject to subsections (c) and (d), a beneficiary's bank accepts
a payment order at the earliest of the following times:
(1)when the bank:
(i)pays the beneficiary as stated in IC 26-1-4.1-405(a) or IC 26-1-4.1-405(b); or
(ii)notifies the beneficiary of receipt of the order or that the
account of the beneficiary has been credited with respect to the
order unless the notice indicates that the bank is rejecting the
order or that funds with respect to the order may not be
withdrawn or used until receipt of payment from the sender of
the order;
(2)when the bank receives payment of the entire amount of the
sender's order pursuant to IC 26-1-4.1-403(a)(1) o
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(a) Subject to subsection (d), a receiving
bank other than the beneficiary's bank accepts a payment order when
it executes the order.
(b) Subject to subsections (c) and (d), a beneficiary's bank accepts
a payment order at the earliest of the following times:
(1) when the bank:
(i) pays the beneficiary as stated in IC 26-1-4.1-405(a) or IC 26-1-4.1-405(b); or
(ii) notifies the beneficiary of receipt of the order or that the
account of the beneficiary has been credited with respect to the
order unless the notice indicates that the bank is rejecting the
order or that funds with respect to the order may not be
withdrawn or used until receipt of payment from the sender of
the order;
(2) when the bank receives payment of the entire amount of the
sender's order pursuant to IC 26-1-4.1-403(a)(1) or IC 26-1-4.1-403(a)(2); or
(3) the opening of the next funds-transfer business day of the bank
following the payment date of the order if, at that time, the
amount of the sender's order is fully covered by a withdrawable
credit balance in an authorized account of the sender or the bank
has otherwise received full payment from the sender, unless the
order was rejected before that time or is rejected within:
(i) one (1) hour after that time; or
(ii) one (1) hour after the opening of the next business day of
the sender following the payment date if that time is later.
If notice of rejection is received by the sender after the payment
date and the authorized account of the sender does not bear
interest, the bank is obliged to pay interest to the sender on the
amount of the order for the number of days elapsing after the
payment date to the day the sender receives notice or learns that
the order was not accepted, counting that day as an elapsed day.
If the withdrawable credit balance during that period falls below
the amount of the order, the amount of interest payable is reduced
accordingly.
(c) Acceptance of a payment order cannot occur before the order is
received by the receiving bank. Acceptance does not occur under
subsection (b)(2) or (b)(3) if the beneficiary of the payment order does
not have an account with the receiving bank, the account has been
closed, or the receiving bank is not permitted by law to receive credits
for the beneficiary's account.
(d) 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
canceled pursuant to IC 26-1-4.1-211(b), the bank may recover from
the beneficiary any payment received to the extent allowed by the law
governing mistake and restitution.