This text of New York § 4-A-403 (Payment by Sender to Receiving Bank) is published on Counsel Stack Legal Research, covering New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Section 4-A-403. Payment by Sender to Receiving Bank.\n (1) Payment of the sender's obligation under Section 4-A-402 to pay\nthe receiving bank occurs as follows:\n (a) If the sender is a bank, payment occurs when the receiving\n bank receives final settlement of the obligation through a\n Federal Reserve Bank or through a funds-transfer system.\n (b) If the sender is a bank and the sender (i) credited an\n account of the receiving bank with the sender, or (ii) caused\n an account of the receiving bank in another bank to be\n credited, payment occurs when the credit is withdrawn or, if\n not withdrawn, at midnight of the day on which the credit is\n withdrawable and the receiving bank learns of that fact.\n
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Section 4-A-403. Payment by Sender to Receiving Bank.\n (1) Payment of the sender's obligation under Section 4-A-402 to pay\nthe receiving bank occurs as follows:\n (a) If the sender is a bank, payment occurs when the receiving\n bank receives final settlement of the obligation through a\n Federal Reserve Bank or through a funds-transfer system.\n (b) If the sender is a bank and the sender (i) credited an\n account of the receiving bank with the sender, or (ii) caused\n an account of the receiving bank in another bank to be\n credited, payment occurs when the credit is withdrawn or, if\n not withdrawn, at midnight of the day on which the credit is\n withdrawable and the receiving bank learns of that fact.\n (c) If the receiving bank debits an account of the sender with\n the receiving bank, payment occurs when the debit is made to\n the extent the debit is covered by a withdrawable credit\n balance in the account.\n (2) If the sender and receiving bank are members of a funds-transfer\nsystem that nets obligations multilaterally among participants, the\nreceiving bank receives final settlement when settlement is complete in\naccordance with the rules of the system. The obligation of the sender to\npay the amount of a payment order transmitted through the funds-transfer\nsystem may be satisfied, to the extent permitted by the rules of the\nsystem, by setting off and applying against the sender's obligation the\nright of the sender to receive payment from the receiving bank of the\namount of any other payment order transmitted to the sender by the\nreceiving bank through the funds-transfer system. The aggregate balance\nof obligations owed by each sender to each receiving bank in the\nfunds-transfer system may be satisfied, to the extent permitted by the\nrules of the system, by setting off and applying against that balance\nthe aggregate balance of obligations owed to the sender by other members\nof the system. The aggregate balance is determined after the right of\nsetoff stated in the second sentence of this subsection has been\nexercised.\n (3) If two banks transmit payment orders to each other under an\nagreement that settlement of the obligations of each bank to the other\nunder Section 4-A-402 will be made at the end of the day or other\nperiod, the total amount owed with respect to all orders transmitted by\none bank shall be set off against the total amount owed with respect to\nall orders transmitted by the other bank. To the extent of the setoff,\neach bank has made payment to the other.\n (4) In a case not covered by subsection (1), the time when payment of\nthe sender's obligation under subsection (2) or subsection (3) of\nSection 4-A-402 occurs is governed by applicable principles of law that\ndetermine when an obligation is satisfied.\n