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Acceptance of payment order - 13 Pa. Cons. Stat. § 4A209

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     § 4A209.  Acceptance of payment order.
        (a)  Receiving bank.--Subject to subsection (d), a receiving
     bank other than the beneficiary's bank accepts a payment order
     when it executes the order.
        (b)  Beneficiary's bank.--Subject to subsections (c) and (d),
     a beneficiary's bank accepts a payment order at the earliest of
     the following times:
            (1)  when the bank:
                (i)  pays the beneficiary as stated in section
            4A405(a) or (b) (relating to payment by beneficiary's
            bank to beneficiary); or
                (ii)  notifies the beneficiary of receipt of the
            order or that the account of the beneficiary has been
            credited with respect to the order unless the notice
            indicates that the bank is rejecting the order or that
            funds with respect to the order may not be withdrawn or
            used until receipt of payment from the sender of the
            order;
            (2)  when the bank receives payment of the entire amount
        of the sender's order pursuant to section 4A403(a)(1) or (2)
        (relating to payment by sender to receiving bank); or
            (3)  the opening of the next funds-transfer business day
        of the bank following the payment date of the order if, at
        that time, the amount of the sender's order is fully covered
        by a withdrawable credit balance in an authorized account of
        the sender or the bank has otherwise received full payment
        from the sender, unless the order was rejected before that
        time or is rejected within one hour after that time, or one
        hour after the opening of the next business day of the sender
        following the payment date if that time is later.
     If notice of rejection is received by the sender after the
     payment date and the authorized account of the sender does not
     bear interest, the bank is obliged to pay interest to the sender
     on the amount of the order for the number of days elapsing after
     the payment date to the day the sender receives notice or learns
     that the order was not accepted, counting that day as an elapsed
     day. If the withdrawable credit balance during that period falls
     below the amount of the order, the amount of interest payable is
     reduced accordingly.
        (c)  Limitations on acceptance.--Acceptance of a payment
     order cannot occur before the order is received by the receiving
     bank. Acceptance does not occur under subsection (b)(2) or (3)
     if the beneficiary of the payment order does not have an account
     with the receiving bank, the account has been closed or the
     receiving bank is not permitted by law to receive credits for
     the beneficiary's account.
        (d)  Payment order by originator of funds transfer to
     originator's bank.--A payment order issued to the originator's
     bank cannot be accepted until the payment date if the bank is
     the beneficiary's bank or the execution date if the bank is not
     the beneficiary's bank. If the originator's bank executes the
     originator's payment order before the execution date or pays the
     beneficiary of the originator's payment order before the payment
     date and the payment order is subsequently canceled pursuant to
     section 4A211(b) (relating to cancellation and amendment of
     payment order), the bank may recover from the beneficiary any
     payment received to the extent allowed by the law governing
     mistake and restitution.

        Cross References.  Section 4A209 is referred to in sections
     4A105, 4A212, 4A302 of this title.

Last modified: November 27, 2007