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Can you summarize MDCM Com. Law, Title 4A?
Commercial Law
Short Summary
This legal document, part of the Code of Maryland, Commercial Law, Title 4A, SubTitle 1, defines and explains various terms related to payment orders. It establishes rules for the time of receipt of payment orders or communications cancelling or amending payment orders. Receiving banks have the authority to set cutoff times for the receipt and processing of payment orders and communications. The document also mentions that regulations of the board of governors of the Federal Reserve System and operating circulars of the Federal Reserve Banks supersede any inconsistent provision of this title. Additionally, it specifies that this title does not apply to funds transfers governed by the Electronic Fund Transfer Act, except for remittance transfers that are not electronic fund transfers. This legal document, found in the Code of Maryland under Commercial Law, Title 4A, SubTitle 3, outlines the obligations and instructions for receiving banks when executing payment orders in funds transfers. It specifies that if a receiving bank accepts a payment order, it is obliged to issue a payment order complying with the sender’s instructions and follow the sender’s instructions regarding intermediary banks or means of transmission. The document also allows receiving banks to use any reasonable funds-transfer system and issue payment orders to the beneficiary’s bank or intermediary bank. However, the receiving bank is not required to follow instructions designating a specific funds-transfer system if it is not feasible or would unduly delay the transfer. The legal document, part of the Code of Maryland, Commercial Law, Title 4A, SubTitle 4, governs the acceptance and payment obligations related to payment orders and funds transfers. It outlines the obligations of the sender and the receiving bank in different scenarios. The document specifies that the payment date of a payment order is the day on which the amount of the order is payable to the beneficiary by the beneficiary’s bank. The document also covers the obligations of the beneficiary’s bank when accepting a payment order and the rights of the beneficiary in case of non-payment. This legal document, part of the Code of Maryland, Commercial Law, Title 4A, SubTitle 5, governs the rights and obligations of parties involved in a funds transfer. It allows for the variation of these rights and obligations through agreement, except where otherwise provided in this title. The document defines ‘funds-transfer system rule’ as a rule of an association of banks that governs the transmission of payment orders or rights and obligations between banks involved in a funds transfer. It also covers creditor process with respect to authorized accounts and payment orders in funds transfers. The document outlines the actions and obligations of receiving banks when served with creditor process, including the reduction of the authorized account balance and the ability to credit the beneficiary’s account and set off the amount credited against an obligation owed by the beneficiary to the bank. The document also addresses the ability of a court to restrain certain actions related to funds transfers, such as issuing payment orders or releasing funds to beneficiaries. Additionally, the document covers the sequencing of payment orders and items payable from the sender’s account, the preclusion of customers from objecting to payments received by the bank, and the payment of interest by receiving banks for payment orders. It provides guidelines for determining the amount of interest payable and the reduction of interest in case of failed funds transfers. The document also addresses the choice of governing law for funds transfers and the priority of agreements and choice-of-law rules.
Whom does it apply to?
Senders, receiving banks, beneficiary's banks, and intermediaries involved in funds transfers
What does it govern?
Payment orders and funds transfers
What are exemptions?
This title does not apply to funds transfers governed by the Electronic Fund Transfer Act, except for remittance transfers that are not electronic fund transfers.
What are the Penalties?
No specific penalties are mentioned in this document.
Jurisdiction
Maryland