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Can you summarize MNST 336.4A-402?
UNIFORM COMMERCIAL CODE > OBLIGATION OF SENDER TO PAY RECEIVING BANK.
Short Summary
This section of the Minnesota Statutes, specifically under the Trade Regulations and Consumer Protection section of the Uniform Commercial Code, outlines the obligations of the sender to pay the receiving bank in the context of payment orders. If a payment order is issued to the beneficiary’s bank, acceptance of the order by the bank obliges the sender to pay the bank the amount of the order, with payment due on the payment date. If the payment order is issued to a receiving bank other than the beneficiary’s bank, acceptance of the order obliges the sender to pay the bank the amount of the sender’s order, with payment due on the execution date. The sender’s obligation to pay is excused if the funds transfer is not completed by acceptance by the beneficiary’s bank of a payment order instructing payment to the beneficiary. If the sender pays the order but was not obliged to pay all or part of the amount, the receiving bank is obliged to refund the payment to the extent the sender was not obliged to pay, with interest payable on the refundable amount from the date of payment. In certain circumstances where an intermediary bank is unable to refund payment, the sender in the funds transfer that executed a payment order in compliance with an instruction to route the funds transfer through that intermediary bank is entitled to receive or retain payment from the sender of the payment order. The right of the sender to be excused from the obligation to pay the order or to receive a refund may not be varied by agreement.
Whom does it apply to?
Senders of payment orders and receiving banks
What does it govern?
Obligation of sender to pay receiving bank
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota