§ 336.4A-212 — Liability and Duty of Receiving Bank Regarding Unaccepted Payment Order
Plain-Language Summary
A receiving bank generally has no duty to accept a payment order, and no duty to act or refrain from acting on an order before it accepts it, except as this article provides or as the bank expressly agrees. If the bank is obliged by an express agreement to accept an order and fails to do so, it is liable for breach to the extent the agreement or this article provides. Any liability based on acceptance arises only when acceptance actually occurs under section 336.4A-209, and is limited to what this article provides. The receiving bank is not the agent of the sender, the beneficiary, or any other party to the funds transfer, and owes no duty to them beyond what this article or an express agreement requires.
336.4A-212 LIABILITY AND DUTY OF RECEIVING BANK REGARDING UNACCEPTED PAYMENT ORDER.
If a receiving bank fails to accept a payment order that it is obliged by express agreement to accept, the bank is liable for breach of the agreement to the extent provided in the agreement or in this article, but does not otherwise have any duty to accept a payment order or, before acceptance, to take any action, or refrain from taking action, with respect to the order except as provided in this article or by express agreement. Liability based on acceptance arises only when acceptance occurs as stated in section 336.4A-209, and liability is limited to that provided in this article. A receiving bank is not the agent of the sender or beneficiary of the payment order it accepts, or of any other party to the funds transfer, and the bank owes no duty to any party to the funds transfer except as provided in this article or by express agreement.
History:
History: History:
1990 c 582 art 1 s 20