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Can you summarize Tex. Bus. & Com. Chapter 4A?
UNIFORM COMMERCIAL CODE > FUNDS TRANSFERS
Short Summary
These legal documents, part of the Texas Statutes under the Business and Commerce Code, specifically fall under the UNIFORM COMMERCIAL CODE section related to funds transfers. They govern the issuance, acceptance, and execution of payment orders in funds transfers. The documents define terms such as ‘payment order,’ ‘beneficiary,’ ‘beneficiary’s bank,’ ‘receiving bank,’ and ‘sender.’ They clarify that a payment order is an instruction from a sender to a receiving bank to pay a fixed amount to a beneficiary, and it can be transmitted orally, electronically, or in writing. The documents outline the conditions for authorized and binding payment orders, the use of security procedures for verification, and the commercial reasonableness of such procedures. They also address the acceptance, rejection, cancellation, and amendment of payment orders, as well as the obligations and liabilities of receiving banks and senders. The documents establish the limited liability of receiving banks and their role as agents in funds transfers. Additionally, they cover the payment obligations between senders and receiving banks, including the timing and methods of payment, final settlement, and satisfaction of payment obligations through setoff. The documents also govern the variation of rights and obligations in funds transfers through agreements between parties and the treatment of creditor process served on receiving banks. They provide rules for the sequence of charging a sender’s account with multiple payment orders and the preclusion of customers from asserting a bank’s entitlement to retain a payment if notified and not objected within one year. Lastly, the documents govern the rate of interest for payment orders issued to a receiving bank and the refund of payment in case of a failed funds transfer. These documents apply to senders, receiving banks, beneficiaries, and beneficiary’s banks involved in funds transfer transactions under the Texas Business and Commerce Code.
Whom does it apply to?
Senders, receiving banks, beneficiaries, beneficiary's banks
What does it govern?
Payment orders and funds transfers
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Texas