In this Article unless the context otherwise requires: 1.Funds transfer means the series of transactions, beginning with the originators payment order, made for the purpose of making payment to the beneficiary of the order. The term includes any payment order issued by the originators bank or an intermediary bank intended to carry out the originators payment order. A funds transfer is completed by acceptance by the beneficiarys bank of a payment order for the benefit of the beneficiary of the originators payment order.

This legal document is part of the Iowa Code and specifically pertains to the Uniform Commercial Code (UCC) in the context of funds transfers. It provides definitions for various terms used in the UCC Article related to funds transfers, such as ‘authorized account’, ‘bank’, ‘customer’, ‘funds-transfer business day’, ‘funds-transfer system’, and more. The document also references other definitions applicable to this Article and sections within it. It is important for banks, customers, and other entities involved in funds transfers to understand and comply with these definitions to ensure proper interpretation and application of the UCC provisions related to funds transfers.

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. 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 as of July 1, 1991, supersede any inconsistent provision of this Article to the extent of the inconsistency. 92 Acts, ch 1146, 7; 2022 Acts, ch 1032, 96 Section amended

Except as provided in subsection 2, this Article does not apply to a funds transfer any part of which is governed by the Electronic Fund Transfer Act of 1978, 15 U.S.C. 1693 et seq. 2.This Article applies to a funds transfer that is a remittance transfer as defined in the Electronic Fund Transfer Act, 15 U.S.C. 1693o-1, unless the remittance transfer is an electronic fund transfer as defined in the Electronic Fund Transfer Act, 15 U.

Security procedure means a procedure established by agreement between a customer and a receiving bank for the purpose of verifying that a payment order or communication amending or canceling a payment order is that of the customer, or 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, governed by the Iowa Code under the Uniform Commercial Code, pertains to payment orders and the security procedures associated with them. It establishes that a payment order received by a receiving bank is considered authorized if the sender has authorized it or is bound by it under the law of agency. Additionally, 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 customer’s order, even if unauthorized, as long as the security procedure is commercially reasonable and the bank accepted the order in good faith and compliance with the security procedure.

This legal provision, found in the Iowa Code under the Uniform Commercial Code, addresses the unenforceability of certain verified payment orders. It applies to receiving banks and customers involved in payment transactions. If a payment order is not authorized by the customer but is still effective as an order, the receiving bank may limit its enforcement or retention of payment through a written agreement. However, if the customer can prove that the order was not caused by an authorized person or that unauthorized access to customer information facilitated a breach of the security procedure, the receiving bank is not entitled to enforce or retain payment.

This legal document, governed by the Iowa Code under the Uniform Commercial Code, addresses the refund of payment and the duty of customers to report unauthorized payment orders. If a receiving bank accepts a payment order that is not authorized or enforceable against the customer, the bank must refund any payment related to the order to the extent it is not entitled to enforce payment. The bank is also required to pay interest on the refundable amount.

This section of the Iowa Code, specifically under the Uniform Commercial Code, governs the handling of erroneous payment orders in funds transfers. It outlines the rules and obligations for senders and receiving banks in cases where a payment order is transmitted with errors. If the sender can prove compliance with the security procedure and that the error would have been detected if the receiving bank had also complied, the sender is not obligated to pay the order to the extent stated.