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Can you summarize IACO 554.12302?
UNIFORM COMMERCIAL CODE > Obligations of receiving bank in execution of payment order.
Short Summary
This legal document, part of the Iowa Code’s Uniform Commercial Code, outlines the obligations of a receiving bank when executing a payment order. The receiving bank is obligated to issue a payment order complying with the sender’s instructions and follow any instructions regarding intermediary banks or funds-transfer systems. If the sender’s instruction indicates an expeditious means of transfer, the receiving bank must transmit the payment order accordingly. The receiving bank may use any reasonable funds-transfer system unless instructed otherwise, and exercise ordinary care in selecting intermediary banks. If not otherwise instructed, the receiving bank may execute a payment order by first-class mail or any reasonable means. The receiving bank is prohibited from obtaining payment of its charges by issuing a payment order in a reduced amount. This document provides guidelines for receiving banks to ensure proper execution of payment orders.
Whom does it apply to?
Receiving banks
What does it govern?
Obligations of receiving bank in execution of payment order
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Iowa