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Can you summarize NHRS 382-A:4A-202?
UNIFORM COMMERCIAL CODE > Authorized and Verified Payment Orders.
Short Summary
This legal document, part of the New Hampshire Revised Statutes under the Uniform Commercial Code, governs the authorization and verification of payment orders. It establishes that a payment order received by a receiving bank is considered authorized if the person identified as the sender has authorized it or is bound by it under agency law. Additionally, if a bank and its customer have agreed to verify the authenticity of payment orders through a security procedure, a payment order received by the bank is effective as the customer’s order, regardless of authorization, if the security procedure is commercially reasonable and the bank accepted the order in good faith and compliance with the security procedure and any customer agreements or instructions. The document also discusses the determination of commercial reasonableness for security procedures and clarifies that the term ‘sender’ includes the customer if the order is authorized or effective as the customer’s order. Amendments and cancellations of payment orders are also covered. The document does not mention any specific exemptions or penalties.
Whom does it apply to?
Receiving banks, customers, and senders of payment orders
What does it govern?
Authorized and Verified Payment Orders
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
New Hampshire