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Can you summarize HIRS Chapter 490, Article 4A?
Uniform Commercial Code > FUNDS TRANSFERS
Short Summary
These legal documents, part of the Hawaii Revised Statutes under the Uniform Commercial Code, govern funds transfers. They define the term ‘payment order’ and provide definitions for various entities involved in funds transfers. The documents establish rules for the time of receipt of payment orders and communications in funds transfers, including the treatment of payment orders and communications received after cut-off times or on non-funds-transfer business days. They also address the issue and acceptance of payment orders, including the authorization and effectiveness of payment orders received by receiving banks. The documents outline the obligations of receiving banks in executing payment orders, including the issuance of payment orders complying with the sender’s instructions and the selection of intermediary banks. They also cover the payment obligations in funds transfers, including the obligations of the sender to pay the receiving bank and the obligations of the beneficiary’s bank to pay the beneficiary. The documents address the conditions under which payment occurs and the rights and obligations of the beneficiary’s bank, originator, and sender in case of non-settlement or failure of the funds-transfer system. Additionally, the documents allow parties to vary their rights and obligations through agreements, specify the treatment of creditor process served on receiving banks, and establish rules for determining the rate of interest for payment orders and the choice of law in funds transfers. The law of the jurisdiction where the receiving bank or beneficiary’s bank is located generally governs the rights and obligations, unless the parties have agreed otherwise or a funds-transfer system rule applies. No specific exemptions or penalties are mentioned in these documents.
Whom does it apply to?
Senders, receiving banks, beneficiaries, and other entities involved in funds transfers
What does it govern?
Funds transfers
What are exemptions?
No specific exemptions are mentioned in these documents.
What are the Penalties?
No specific penalties are mentioned in these documents.
Jurisdiction
Hawaii