Texas Business & Commerce Code - Section 4A.212. Liability And Duty Of Receiving Bank Regarding Unaccepted Payment Order
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§ 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 chapter, 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 chapter or by express agreement.
Liability based on acceptance arises only when acceptance occurs as
stated in Section 4A.209, and liability is limited to that provided
in this chapter. 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 chapter or by express
agreement.
Added by Acts 1993, 73rd Leg., ch. 570, § 7, eff. Sept. 1, 1993.
Section: 4A.205 4A.206 4A.207 4A.208 4A.209 4A.210 4A.211 4A.212 4A.301 4A.302 4A.303 4A.304 4A.305 4A.401 4A.402
Last modified: August 10, 2007
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