400.4A-403. Payment by sender to receiving bank. - Missouri Statutes

Payment by sender to receiving bank.

400.4A-403. (a) Payment of the sender's obligation undersection 400.4A-402 to pay the receiving bank occurs as follows:

(1) If the sender is a bank, payment occurs when thereceiving bank receives final settlement of the obligationthrough a Federal Reserve Bank or through a funds-transfersystem.

(2) If the sender is a bank and the sender (i) credited anaccount of the receiving bank with the sender, or (ii) caused anaccount of the receiving bank in another bank to be credited,payment occurs when the credit is withdrawn or, if not withdrawn,at midnight of the day on which the credit is withdrawable andthe receiving bank learns of that fact.

(3) If the receiving bank debits an account of the senderwith the receiving bank, payment occurs when the debit is made tothe extent the debit is covered by a withdrawable credit balancein the account.

(b) If the sender and receiving bank are members of afunds-transfer system that nets obligations multilaterally amongparticipants, the receiving bank receives final settlement whensettlement is complete in accordance with the rules of thesystem. The obligation of the sender to pay the amount of apayment order transmitted through the funds-transfer system maybe satisfied, to the extent permitted by the rules of the system,by setting off and applying against the sender's obligation theright of the sender to receive payment from the receiving bank ofthe amount of any other payment order transmitted to the senderby the receiving bank through the funds-transfer system. Theaggregate balance of obligations owed by each sender to eachreceiving bank in the funds-transfer system may be satisfied, tothe extent permitted by the rules of the system, by setting offand applying against that balance the aggregate balance ofobligations owed to the sender by other members of the system.The aggregate balance is determined after the right of setoffstated in the second sentence of this subsection has beenexercised.

(c) If two banks transmit payment orders to each otherunder an agreement that settlement of the obligations of eachbank to the other under section 400.4A-402 will be made at theend of the day or other period, the total amount owed withrespect to all orders transmitted by one bank shall be set offagainst the total amount owed with respect to all orderstransmitted by the other bank. To the extent of the setoff, eachbank has made payment to the other.

(d) In a case not covered by subsection (a), the time whenpayment of the sender's obligation under section 400.4A-402(b) orsection 400.4A-402(c) occurs is governed by applicable principlesof law that determine when an obligation is satisfied.

(L. 1992 S.B. 448)