70A-4a-506 - Rate of interest. - Utah Statutes

70A-4a-506. Rate of interest.
(1) If, under this chapter, a receiving bank is obliged to pay interest with respect to apayment order issued to the bank, the amount payable may be determined:
(a) by agreement of the sender and receiving bank; or
(b) if the payment order is transmitted through a funds transfer system, by a funds transfersystem rule.
(2) If the amount of interest is not determined by an agreement or rule as stated inSubsection (1), the amount is calculated by multiplying the applicable Federal Funds rate by theamount on which interest is payable, and then multiplying the product by the number of days forwhich interest is payable. The applicable Federal Funds rate is the average of the Federal Fundsrates published by the Federal Reserve Bank of New York for each of the days for which interestis payable divided by 360. The Federal Funds rate for any day on which a published rate is notavailable is the same as the published rate for the next preceding day for which there is apublished rate. If a receiving bank that accepted a payment order is required to refund paymentto the sender of the order because the funds transfer was not completed, but the failure tocomplete was not due to any fault by the bank, the interest payable is reduced by a percentageequal to the reserve requirement on deposits of the receiving bank.

Amended by Chapter 237, 1993 General Session