§ 10:4A-103 — Payment Order - Definitions

§4A-103. Payment Order - Definitions
(a) In this Chapter:
(1) "Payment order" means an instruction of a sender to a receiving bank, transmitted
orally or in a record, 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.
(2) "Beneficiary" means the person to be paid by the beneficiary's bank.
(3) "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.
(4) "Receiving bank" means the bank to which the sender's instruction is addressed.
(5) "Sender" means the person giving the instruction to the receiving bank.
(b) If an instruction complying with Subsection (a)(1) is to make more than one
payment to a beneficiary, the instruction is a separate payment order with respect to each
payment.
(c) A payment order is issued when it is sent to the receiving bank.

Legislative History

Added by Acts 1990, No. 1079, §4, eff. Sept. 1, 1990; Acts 2024, No. 773, §1.