Except as otherwise provided in section 336.4A-108 , this article applies to funds transfers defined in section 336.4A-104 . History: 1990 c 582 art 1 s 2

This legal document, part of the Minnesota Statutes under the TRADE REGULATIONS, CONSUMER PROTECTION section, specifically the UNIFORM COMMERCIAL CODE, defines various terms related to payment orders. A payment order refers to an instruction from a sender to a receiving bank to pay a fixed or determinable amount of money to a beneficiary. The instruction must not have any conditions other than the time of payment, and the receiving bank is reimbursed by debiting the sender’s account or receiving payment from the sender.

In this article: (a) ‘Funds transfer’ means the series of transactions, beginning with the originator’s payment order, made for the purpose of making payment to the beneficiary of the order. The term includes any payment order issued by the originator’s bank or an intermediary bank intended to carry out the originator’s payment order. A funds transfer is completed by acceptance by the beneficiary’s bank of a payment order for the benefit of the beneficiary of the originator’s payment order.

This legal document, known as Uniform Commercial Code (UCC) Article 4A, governs funds transfers and payment orders between banks and customers. It applies to banks, customers, and other entities involved in funds transfers. The document provides definitions for various terms used in the article, such as ‘authorized account,’ ‘bank,’ ‘customer,’ ‘funds-transfer business day,’ ‘funds-transfer system,’ and more. It also references definitions from other sections of the UCC that apply to this article.

This legal document governs the time of receipt of a payment order or communication canceling or amending a payment order. It applies to receiving banks involved in funds transfers. The document allows receiving banks to establish cut-off times for the receipt and processing of payment orders and communications. Different cut-off times may apply to different categories of payment orders or senders. If a payment order or communication is received after the close of a funds-transfer business day or after the appropriate cut-off time, the receiving bank may treat it as received at the opening of the next funds-transfer business day.

Regulations of the Board of Governors of the Federal Reserve System and operating circulars of the Federal Reserve Banks supersede any inconsistent provision of this article to the extent of the inconsistency. History: 1990 c 582 art 1 s 7

This article pertains to funds transfers and their regulation. It specifies that the article does not apply to funds transfers governed by the Electronic Fund Transfer Act, except for remittance transfers that are also electronic fund transfers. In the event of any inconsistency between this article and the Electronic Fund Transfer Act, the provisions of the Electronic Fund Transfer Act govern. The article does not mention any specific penalties for non-compliance or violation.

‘Security procedure’ means a procedure established by agreement of a customer and a receiving bank for the purpose of (i) verifying that a payment order or communication amending or canceling a payment order is that of the customer, or (ii) detecting error in the transmission or the content of the payment order or communication. A security procedure may require the use of algorithms or other codes, identifying words or numbers, encryption, callback procedures, or similar security devices.

This legal document governs payment orders and their authorization. It applies to receiving banks and customers. A payment order received by the receiving bank is considered authorized if the person identified as the sender authorized the order or is bound by it under agency law. 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 order of the customer, regardless of authorization, if the security procedure is commercially reasonable and the bank accepted the payment order in good faith and compliance with the security procedure.

This legal document, part of the Minnesota Statutes under the TRADE REGULATIONS, CONSUMER PROTECTION section, specifically falls under the UNIFORM COMMERCIAL CODE. It addresses the unenforceability of certain verified payment orders. If a payment order is not an authorized order of a customer but is effective as an order of the customer, the receiving bank may limit its entitlement to enforce or retain payment through an express written agreement. However, if the customer can prove that the order was not caused by a person entrusted with duties related to payment orders or the security procedure, or by someone who obtained unauthorized access to the customer’s transmitting facilities or information facilitating breach of the security procedure, the receiving bank is not entitled to enforce or retain payment.