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Can you summarize IACO 554.12202?
UNIFORM COMMERCIAL CODE > Authorized and verified payment orders.
Short Summary
This legal document, governed by the Iowa Code under the Uniform Commercial Code, pertains to payment orders and the security procedures associated with them. It establishes that a payment order received by a receiving bank is considered authorized if the sender has authorized it or is bound by it under the law of agency. Additionally, if a bank and its customer have agreed to verify the authenticity of payment orders through a security procedure, a payment order received by the bank is effective as the customer’s order, even if unauthorized, as long as the security procedure is commercially reasonable and the bank accepted the order in good faith and compliance with the security procedure. The document also discusses the factors to determine the commercial reasonableness of a security procedure and includes provisions regarding amendments and cancellations of payment orders. It is important to note that this document does not mention any specific exemptions or penalties.
Whom does it apply to?
Receiving banks and customers who issue payment orders
What does it govern?
Payment orders and security procedures for payment orders
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Iowa