2025 Session Last amended: 1990 session

§ 336.4A-503 — Injunction or Restraining Order With Respect to Funds Transfer

Plain-Language Summary

This section limits when a court may step in to block a funds transfer. For proper cause and consistent with applicable law, a court may restrain a person from issuing a payment order, an originator's bank from executing one, or the beneficiary's bank from releasing funds (or the beneficiary from withdrawing them). Apart from those specific situations, a court may not restrain a person from issuing, paying, or receiving payment of a payment order or otherwise acting in connection with a funds transfer.

336.4A-503 INJUNCTION OR RESTRAINING ORDER WITH RESPECT TO FUNDS TRANSFER.

For proper cause and in compliance with applicable law, a court may restrain (i) a person from issuing a payment order to initiate a funds transfer, (ii) an originator’s bank from executing the payment order of the originator, or (iii) the beneficiary’s bank from releasing funds to the beneficiary or the beneficiary from withdrawing the funds. A court may not otherwise restrain a person from issuing a payment order, paying or receiving payment of a payment order, or otherwise acting with respect to a funds transfer.

History:

1990 c 582 art 1 s 34

History: History:

  1990 c 582 art 1 s 34

Practical Notes

A court cannot freely halt a wire transfer mid-stream. It may issue an injunction only at defined points: stopping a payment order from being issued, stopping the originator’s bank from executing it, or stopping the beneficiary’s bank from releasing the funds or the beneficiary from withdrawing them. Beyond those points, courts are barred from interfering with the transfer.

Source: Minnesota Office of the Revisor of Statutes