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Can you summarize NCGS Chapter 25, Article 4A?
Uniform Commercial Code > Funds Transfers.
Short Summary
These legal documents, part of the North Carolina General Statutes under the Uniform Commercial Code and Funds Transfers, govern payment orders and funds transfers. They define various terms related to funds transfers, such as ‘beneficiary,’ ‘beneficiary’s bank,’ ‘receiving bank,’ and ‘sender.’ The documents establish that a payment order received by the receiving bank is considered authorized if the sender authorized it or is bound by it under the law of agency. They also discuss the commercial reasonableness of security procedures and the obligations of receiving banks when executing payment orders. The documents outline the payment obligations between senders and receiving banks, including the timing and methods of payment. They specify that the sender is obliged to pay the receiving bank, and the receiving bank is obliged to pay the beneficiary. The documents also address the obligations of beneficiary’s banks to pay and provide notice to the beneficiary. They further discuss the rights and obligations of parties involved in funds transfers and the applicability of funds-transfer system rules. These documents provide guidance and regulations for the execution and payment process in funds transfers within the legal framework of North Carolina.
Whom does it apply to?
Senders, receiving banks, beneficiaries, originators, intermediary banks
What does it govern?
Payment orders, funds transfers, sender, receiving bank, beneficiary, beneficiary's bank, originator, originator's bank, intermediary bank
What are exemptions?
This Article does not apply to a funds transfer governed by the Electronic Fund Transfer Act, unless it is a remittance transfer.
What are the Penalties?
No specific penalties are mentioned in these documents.
Jurisdiction
North Carolina