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Can you summarize MNST 336.4A-506?
UNIFORM COMMERCIAL CODE > RATE OF INTEREST.
Short Summary
This legal document, under the Minnesota Statutes, specifically under the TRADE REGULATIONS, CONSUMER PROTECTION section of the UNIFORM COMMERCIAL CODE, governs the rate of interest applicable to payment orders issued to receiving banks. The amount of interest payable can be determined by agreement between the sender and receiving bank or by a funds-transfer system rule if the payment order is transmitted through a funds-transfer system. If the amount of interest is not determined by an agreement or rule, it is calculated based on the applicable Federal Funds rate multiplied by the amount on which interest is payable, and then multiplied by the number of days for which interest is payable. The applicable Federal Funds rate is determined by the average of the Federal Funds rates published by the Federal Reserve Bank of New York for each of the days for which interest is payable, divided by 360. If a receiving bank is required to refund payment to the sender due to a failed funds transfer not caused by the bank’s fault, the interest payable is reduced by a percentage equal to the reserve requirement on deposits of the receiving bank.
Whom does it apply to?
Receiving banks
What does it govern?
RATE OF INTEREST
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota