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Can you summarize NJST Chapter 12A:4A?
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Short Summary
These legal documents cover various aspects of payment orders and funds transfers in commercial transactions. They govern the payment process between a beneficiary’s bank and the beneficiary, including the conditions for payment and the enforceability of conditions or agreements between the beneficiary and the bank. The documents also address the provisional nature of payments made through a funds-transfer system and the rights and obligations of the beneficiary’s bank and the originator in case of non-settlement or failure of the system. Additionally, they provide guidance on the timing and methods of payment in commercial transactions between senders and receiving banks. The choice of law in commercial transactions related to payment orders and funds transfers is also discussed. The documents specify the rate of interest applicable to payment orders and outline the liability of receiving banks for late or improper execution or failure to execute payment orders. They also address the duty of customers to report unauthorized payment orders and provide guidelines for handling payment orders and beneficiaries with incorrect identification. The authorization and verification of payment orders, as well as the rejection of payment orders, are covered in these documents. The time of receipt of payment orders or communications is also determined. Definitions related to payment orders are provided, and the relationship to the Electronic Fund Transfer Act is explained. These documents apply to beneficiaries, beneficiary’s banks, senders, receiving banks, customers, originators, originator’s banks, associations of banks, participating banks, and individuals or entities involved in funds transfers. No specific exemptions or penalties are mentioned in these documents.
Whom does it apply to?
Beneficiaries, beneficiary's bank, senders, receiving banks, customers, originators, originator's bank, associations of banks, participating banks, individuals or entities involved in funds transfers
What does it govern?
Payment by a beneficiary's bank to the beneficiary in a funds transfer, conditions for payment, enforceability of conditions to payment or agreements between beneficiary and bank, provisional nature of payments, rights and obligations in case of non-settlement or failure of the system, timing and methods of payment in commercial transactions between senders and receiving banks, choice of law in commercial transactions related to payment orders and funds transfers, rate of interest applicable to payment orders, liability of receiving banks for late or improper execution or failure to execute payment orders, duty of customers to report unauthorized payment orders, handling of payment orders and beneficiaries with incorrect identification, authorization and verification of payment orders, rejection of payment orders, time of receipt of payment orders or communications, definitions related to payment orders, relationship to the Electronic Fund Transfer Act
What are exemptions?
No specific exemptions are mentioned in these documents.
What are the Penalties?
No specific penalties are mentioned in these documents.
Jurisdiction
New Jersey