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Can you summarize MNST 336.4A-302?
UNIFORM COMMERCIAL CODE > OBLIGATIONS OF RECEIVING BANK IN EXECUTION OF PAYMENT ORDER.
Short Summary
This legal document, part of the Minnesota Statutes under the Uniform Commercial Code, outlines the obligations of a receiving bank when accepting and executing a payment order. The receiving bank is required to issue a payment order that complies with the sender’s instructions and follows any specified intermediary bank or funds-transfer system. If the sender’s instruction indicates an expedited funds transfer, the receiving bank must transmit the payment order accordingly. However, the receiving bank has the discretion to select a reasonable funds-transfer system and may deviate from the sender’s instruction if it is not feasible or would unduly delay the funds transfer. The receiving bank may execute the payment order by various means, including first-class mail or any other reasonable means. The document also specifies that the receiving bank cannot obtain payment for its charges by deducting them from the sender’s order amount, unless instructed to do so by the sender. Overall, this document establishes the obligations and responsibilities of receiving banks in executing 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
Minnesota