400.4A-209. Acceptance of payment order. - Missouri Statutes

Acceptance of payment order.

400.4A-209. (a) Subject to subsection (d), a receivingbank other than the beneficiary's bank accepts a payment orderwhen it executes the order.

(b) Subject to subsections (c) and (d) of this section, abeneficiary's bank accepts a payment order at the earliest of thefollowing times:

(1) when the bank (i) pays the beneficiary as stated insection 400.4A-405(a) or section 400.4A-405(b), or (ii) notifiesthe beneficiary of receipt of the order or that the account ofthe beneficiary has been credited with respect to the orderunless the notice indicates that the bank is rejecting the orderor that funds with respect to the order may not be withdrawn orused until receipt of payment from the sender of the order.

(2) when the bank receives payment of the entire amount ofthe sender's order pursuant to section 400.4A-403(a)(1) orsection 400.4A-403(a)(2); or

(3) the opening of the next funds-transfer business day ofthe bank following the payment date of the order if, at thattime, the amount of the sender's order is fully covered by awithdrawable credit balance in an authorized account of thesender or the bank has otherwise received full payment from thesender, unless the order was rejected before that time or isrejected within (i) one hour after that time, or (ii) one hourafter the opening of the next business day of the senderfollowing the payment date if that time is later. If notice ofrejection is received by the sender after the payment date andthe authorized account of the sender does not bear interest, thebank is obliged to pay interest to the sender on the amount ofthe order for the number of days elapsing after the payment dateto the day the sender receives notice or learns that the orderwas not accepted, counting that day as an elapsed day. If thewithdrawable credit balance during that period falls below theamount of the order, the amount of interest payable is reducedaccordingly.

(c) Acceptance of a payment order cannot occur before theorder is received by the receiving bank. Acceptance does notoccur under subsection (b)(2) or (b)(3) if the beneficiary of thepayment order does not have an account with the receiving bank,the account has been closed, or the receiving bank is notpermitted by law to receive credits for the beneficiary'saccount.

(d) A payment order issued to the originator's bank cannotbe accepted until the payment date if the bank is thebeneficiary's bank, or the execution date if the bank is not thebeneficiary's bank. If the originator's bank executes theoriginator's payment order before the execution date or pays thebeneficiary of the originator's payment order before the paymentdate and the payment order is subsequently canceled pursuant tosection 400.4A-211(b), the bank may recover from the beneficiaryand payment received to the extent allowed by the law governingmistake and restitution.

(L. 1992 S.B. 448)