§ 25-4A-209. Acceptance of payment order. - North Carolina Statutes

§ 25‑4A‑209. Acceptance of payment order.

(a)        Subject tosubsection (d), a receiving bank other than the beneficiary's bank accepts apayment order when it executes the order.

(b)        Subject tosubsections (c) and (d), a beneficiary's bank accepts a payment order at theearliest of the following times:

(1)        When the bank (i)pays the beneficiary as stated in G.S. 25‑4A‑405(a) or G.S. 25‑4A‑405(b),or (ii) notifies the beneficiary of receipt of the order or that the account ofthe beneficiary has been credited with respect to the order unless the noticeindicates that the bank is rejecting the order or that funds with respect tothe order may not be withdrawn or used until receipt of payment from the senderof the order;

(2)        When the bankreceives payment of the entire amount of the sender's order pursuant to G.S. 25‑4A‑403(a)(1)or G.S. 25‑4A‑403(a)(2); or

(3)        The opening of thenext funds‑transfer business day of the bank following the payment dateof the order if, at that time, the amount of the sender's order is fullycovered by a withdrawable credit balance in an authorized account of the senderor the bank has otherwise received full payment from the sender, unless theorder was rejected before that time or is rejected within (i) one hour afterthat time, or (ii) one hour after the opening of the next business day of thesender following the payment date if that time is later.  If notice ofrejection is received by the sender after the payment date and the authorizedaccount of the sender does not bear interest, the bank is obliged to payinterest to the sender on the amount of the order for the number of dayselapsing after the payment date to the day the sender receives notice or learnsthat the order was not accepted, counting that day as an elapsed day.  If thewithdrawable credit balance during that period falls below the amount of theorder, the amount of interest payable is reduced accordingly.

(c)        Acceptance of apayment order cannot occur before the order is received by the receiving bank.Acceptance does not occur under subsection (b)(2) or (b)(3) if the beneficiaryof the payment order does not have an account with the receiving bank, theaccount has been closed, or the receiving bank is not permitted by law toreceive credits for the beneficiary's account.

(d)        A payment orderissued to the originator's bank cannot be accepted until the payment date ifthe bank is the beneficiary's bank, or the execution date if the bank is notthe beneficiary's bank.  If the originator's bank executes the originator'spayment order before the execution date or pays the beneficiary of theoriginator's payment order before the payment date and the payment order issubsequently cancelled pursuant to G.S. 25‑4A‑211(b), the bank mayrecover from the beneficiary any payment received to the extent allowed by thelaw governing mistake and restitution. (1993, c. 157, s. 1.)