§ 336.4A-301 — Execution and Execution Date
Plain-Language Summary
A receiving bank "executes" a payment order by issuing its own payment order intended to carry out the order it received. A payment order received by the beneficiary's bank can be accepted but cannot be executed. The "execution date" is the day on which the receiving bank may properly issue its order to carry out the sender's instruction; it can be set by the sender but cannot be earlier than the day the order is received, and if not otherwise set it is the day the order is received. If the sender's instruction states a payment date, the execution date is that payment date or an earlier date on which executing is reasonably necessary to pay the beneficiary on the payment date.
336.4A-301 EXECUTION AND EXECUTION DATE.
(a) A payment order is “executed” by the receiving bank when it issues a payment order intended to carry out the payment order received by the bank. A payment order received by the beneficiary’s bank can be accepted but cannot be executed.
(b) “Execution date” of a payment order means the day on which the receiving bank may properly issue a payment order in execution of the sender’s order. The execution date may be determined by instruction of the sender but cannot be earlier than the day the order is received and, unless otherwise determined, is the day the order is received. If the sender’s instruction states a payment date, the execution date is the payment date or an earlier date on which execution is reasonably necessary to allow payment to the beneficiary on the payment date.
History:
History: History:
1990 c 582 art 1 s 21