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Can you summarize MNST 336.4A-202?
UNIFORM COMMERCIAL CODE > AUTHORIZED AND VERIFIED PAYMENT ORDERS.
Short Summary
This legal document governs payment orders and their authorization. It applies to receiving banks and customers. A payment order received by the receiving bank is considered authorized if the person identified as the sender authorized the order or is bound by it under agency law. 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 order of the customer, regardless of authorization, if the security procedure is commercially reasonable and the bank accepted the payment order in good faith and compliance with the security procedure. The commercial reasonableness of a security procedure is determined by considering the customer’s wishes, circumstances, alternative security procedures offered, and security procedures in general use. Amendments and cancellations of payment orders are also covered by this document. No specific exemptions or penalties are mentioned.
Whom does it apply to?
Receiving banks and customers
What does it govern?
Payment orders and their authorization
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota