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Can you summarize NHRS 382-A:4A-302?
UNIFORM COMMERCIAL CODE > Obligations of Receiving Bank in Execution of Payment Order.
Short Summary
This legal document, part of the New Hampshire Revised Statutes under the Uniform Commercial Code, outlines the obligations of a receiving bank when executing a payment order. The receiving bank is required to issue a payment order that complies with the sender’s instructions and follows any instructions regarding intermediary banks or funds-transfer systems. If the sender’s instruction indicates an expedited funds transfer, the receiving bank must transmit the payment order accordingly. The receiving bank has the discretion to use any reasonable funds-transfer system and may issue a payment order to the beneficiary’s bank or an intermediary bank. However, the receiving bank is not obligated to follow the sender’s instruction if it is not feasible or would unduly delay the funds transfer. If not otherwise instructed, the receiving bank may execute a payment order by transmitting it through first-class mail or any other reasonable means. The receiving bank is prohibited from obtaining payment of its charges by issuing a payment order in a reduced amount, and it cannot instruct subsequent receiving banks to obtain payment in the same manner. This document provides guidelines for receiving banks to ensure the proper execution of payment orders.
Whom does it apply to?
Receiving banks that accept a payment order pursuant to Section 4A-209(a)
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
New Hampshire