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Can you summarize NYCL UCC Article 4-A?
Uniform Commercial Code > Funds Transfers
Short Summary
This legal document, found in the Consolidated Laws of New York under the Uniform Commercial Code, governs the payment obligations in funds transfers. It outlines the obligations of the sender to pay the receiving bank and the obligations of the receiving bank to pay the beneficiary. The document covers various aspects such as the discharge of the underlying obligation, the rights and obligations of the originator, beneficiary, and beneficiary’s bank, conditions for payment by the beneficiary’s bank to the beneficiary, time of payment, the provisional nature of payments made through a funds-transfer system, and the rights and obligations of the parties in case of non-settlement. It provides guidance on the payment process in funds transfers involving senders, receiving banks, and beneficiaries.
Whom does it apply to?
Senders, receiving banks, and beneficiaries involved in funds transfers
What does it govern?
Payment obligations in funds transfers, discharge of underlying obligations, rights and obligations of originator, beneficiary, and beneficiary's bank, conditions for payment by beneficiary's bank to beneficiary, time of payment, provisional nature of payments, rights and obligations in case of non-settlement
What are exemptions?
No specific exemptions are mentioned in this document.
What are the Penalties?
No specific penalties are mentioned in this document.
Jurisdiction
New York