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Can you summarize IACO 554.12210?
UNIFORM COMMERCIAL CODE > Rejection of payment order.
Short Summary
This legal document, part of the Iowa Code’s Uniform Commercial Code, governs the rejection of payment orders by receiving banks. It states that a payment order can be rejected by the receiving bank through a notice of rejection transmitted orally, electronically, or in writing. The notice of rejection should indicate that the receiving bank is rejecting the order or will not execute or pay the order. Rejection is effective when the notice is given, either upon transmission or receipt depending on the reasonableness of the means used for transmission. If a receiving bank fails to execute a payment order despite having sufficient funds in the sender’s authorized account, interest may be payable to the sender. If a receiving bank suspends payments, all unaccepted payment orders are deemed rejected. Acceptance of a payment order precludes later rejection, and rejection precludes later acceptance.
Whom does it apply to?
Receiving banks, senders of payment orders
What does it govern?
Payment orders and rejection of payment orders
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Iowa