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Can you summarize IACO 554.12403?
UNIFORM COMMERCIAL CODE > Payment by sender to receiving bank.
Short Summary
This legal document, governed by the Iowa Code under the Uniform Commercial Code, outlines the process of payment from the sender to the receiving bank. It specifies that payment occurs when the receiving bank receives final settlement of the obligation through a federal reserve bank or funds-transfer system. If the sender is a bank and has credited an account of the receiving bank, payment occurs when the credit is withdrawn or at midnight of the day when the credit is withdrawable and the receiving bank is aware of it. If the receiving bank debits an account of the sender, payment occurs when the debit is made to the extent it is covered by a withdrawable credit balance in the account. The document also covers payment obligations in the context of funds-transfer systems and the setoff of obligations between banks. In cases not covered by the specified subsections, the time of payment is determined by applicable principles of law governing when an obligation is satisfied.
Whom does it apply to?
Senders and receiving banks involved in payment transactions
What does it govern?
Payment of the sender's obligation to the receiving bank
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Iowa