§ 25-4A-210. Rejection of payment order. - North Carolina Statutes

§25‑4A‑210.  Rejection of payment order.

(a)        A payment order isrejected by the receiving bank by a notice of rejection transmitted to thesender orally, electronically, or in writing.  A notice of rejection need notuse any particular words and is sufficient if it indicates that the receivingbank is rejecting the order or will not execute or pay the order.  Rejection iseffective when the notice is given if transmission is by a means that isreasonable in the circumstances.  If notice of rejection is given by a meansthat is not reasonable, rejection is effective when the notice is received.  Ifan agreement of the sender and receiving bank establishes the means to be usedto reject a payment order, (i) any means complying with the agreement isreasonable and (ii) any means not complying is not reasonable unless nosignificant delay in receipt of the notice resulted from the use of thenoncomplying means.

(b)        This subsectionapplies if a receiving bank other than the beneficiary's bank fails to executea payment order despite the existence on the execution date of a withdrawablecredit balance in an authorized account of the sender sufficient to cover theorder.  If the sender does not receive notice of rejection of the order on theexecution 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 orderfor the number of days elapsing after the execution date to the earlier of theday the order is cancelled pursuant to G.S. 25‑4A‑211(d) or the daythe sender receives notice or learns that the order was not executed, countingthe final day of the period as an elapsed day.  If the withdrawable creditbalance during that period falls below the amount of the order, the amount of interestis reduced accordingly.

(c)        If a receiving banksuspends payments, all unaccepted payment orders issued to it are deemedrejected at the time the bank suspends payments.

(d)        Acceptance of apayment order precludes a later rejection of the order.  Rejection of a paymentorder precludes a later acceptance of the order. (1993, c. 157, s. 1.)