§ 336.4A-501 — Variation by Agreement and Effect of Funds-transfer System Rule
Plain-Language Summary
This section says that, unless this article provides otherwise, parties to a funds transfer may change their rights and obligations by agreement. It also defines a "funds-transfer system rule" as a rule of an association of banks that governs how payment orders move through the system or the rights and obligations tied to those orders. Such a rule can be effective even when it conflicts with this article and indirectly affects a nonconsenting party, and it can govern parties other than participating banks to the extent allowed by sections 336.4A-404(c), 336.4A-405(d), and 336.4A-507(c).
336.4A-501 VARIATION BY AGREEMENT AND EFFECT OF FUNDS-TRANSFER SYSTEM RULE.
(a) Except as otherwise provided in this article, the rights and obligations of a party to a funds transfer may be varied by agreement of the affected party.
(b) “Funds-transfer system rule” means a rule of an association of banks (i) governing transmission of payment orders by means of a funds-transfer system of the association or rights and obligations with respect to those orders, or (ii) to the extent the rule governs rights and obligations between banks that are parties to a funds transfer in which a Federal Reserve Bank, acting as an intermediary bank, sends a payment order to the beneficiary’s bank. Except as otherwise provided in this article, a funds-transfer system rule governing rights and obligations between participating banks using the system may be effective even if the rule conflicts with this article and indirectly affects another party to the funds transfer who does not consent to the rule. A funds-transfer system rule may also govern rights and obligations of parties other than participating banks using the system to the extent stated in sections 336.4A-404(c), 336.4A-405(d), and 336.4A-507(c).
History:
History: History:
1990 c 582 art 1 s 32