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Can you summarize MNST 336.4A-210?
UNIFORM COMMERCIAL CODE > REJECTION OF PAYMENT ORDER.
Short Summary
This legal document 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 does not need to use specific words, but it must indicate that the receiving bank is rejecting or will not execute the order. Rejection is effective when the notice is given, either by a reasonable means of transmission or upon receipt if an unreasonable means is used. If a receiving bank fails to execute a payment order despite having sufficient funds in the sender’s authorized account, the bank may be obliged to pay interest 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. No specific penalties are mentioned in this document.
Whom does it apply to?
Receiving banks, senders of payment orders
What does it govern?
Rejection of payment orders
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota