§ 336.4A-206 — Transmission of Payment Order Through Funds-transfer or Other Communication System
Plain-Language Summary
When a payment order is sent to a bank through a funds-transfer system or other third-party communication system, that system is treated as the sender's agent for transmitting the order. If what the sender gave the system differs from what the system passed on to the bank, the terms the system actually transmitted to the bank are treated as the sender's order. This rule does not apply to the funds-transfer system of the Federal Reserve Banks, and it applies the same way to cancellations and amendments of payment orders.
336.4A-206 TRANSMISSION OF PAYMENT ORDER THROUGH FUNDS-TRANSFER OR OTHER COMMUNICATION SYSTEM.
(a) If a payment order addressed to a receiving bank is transmitted to a funds-transfer system or other third-party communication system for transmittal to the bank, the system is deemed to be an agent of the sender for the purpose of transmitting the payment order to the bank. If there is a discrepancy between the terms of the payment order transmitted to the system and the terms of the payment order transmitted by the system to the bank, the terms of the payment order of the sender are those transmitted by the system. This section does not apply to a funds-transfer system of the Federal Reserve Banks.
(b) This section applies to cancellations and amendments of payment orders to the same extent it applies to payment orders.
History:
History: History:
1990 c 582 art 1 s 14