This text of North Dakota § 41-04.1-17 ((4A-209) Acceptance of payment order) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
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 subsection 1 or 2 of section
41-04.1-30 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order may not be withdrawn or used until receipt of payment from the sender of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
under subdivision a or b of subsection 1 of section 41-04
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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 subsection 1 or 2 of section
41-04.1-30 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order may not be withdrawn or used until receipt of payment from the sender of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
under subdivision a or b of subsection 1 of section 41-04.1-28.
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 one hour after that time or 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 subdivision 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 canceled under
subsection 2 of section 41-04.1-19, the bank may recover from the beneficiary any
payment received to the extent allowed by the law governing mistake and restitution.