Code of Alabama - Title 7: Commercial Code - Article 4A - Funds Transfers
- Part 1 Subject Matter and Definitions.
- Part 2 Issue and Acceptance of Payment Order.
- Section 7-4A-201 Security procedure
"Security procedure" means a procedure established by agreement of a customer and a receiving bank for the purpose of (i) verifying that a payment order...
- Section 7-4A-202 Authorized and verified payment orders
(a) A payment order received by the receiving bank is the authorized order of the person identified as sender if that person authorized the order...
- Section 7-4A-203 Unenforceability of certain verified payment orders
(a) If an accepted payment order is not, under Section 7-4A-202(a), an authorized order of a customer identified as sender, but is effective as an...
- Section 7-4A-204 Refund of payment and duty of customer to report with respect to unauthorized payment order
(a) If a receiving bank accepts a payment order issued in the name of its customer as sender which is (i) not authorized and not...
- Section 7-4A-205 Erroneous payment orders
(a) If an accepted payment order was transmitted pursuant to a security procedure for the detection of error and the payment order (i) erroneously instructed...
- Section 7-4A-206 Transmission of payment order through funds-transfer or other communication system
(a) If a payment order addressed to a receiving bank is transmitted to a funds-transfer system or other third-party communication system for transmittal to the...
- Section 7-4A-207 Misdescription of beneficiary
(a) Subject to subsection (b), if, in a payment order received by the beneficiary's bank, the name, bank account number, or other identification of the...
- Section 7-4A-208 Misdescription of intermediary bank or beneficiary's bank
(a) This subsection applies to a payment order identifying an intermediary bank or the beneficiary's bank only by an identifying number. (1) The receiving bank...
- Section 7-4A-209 Acceptance of payment order
(a) Subject to subsection (d), a receiving bank other than the beneficiary's bank accepts a payment order when it executes the order. (b) Subject to...
- Section 7-4A-210 Rejection of payment order
(a) A payment order is rejected by the receiving bank by a notice of rejection transmitted to the sender orally, electronically, or in writing. A...
- Section 7-4A-211 Cancellation and amendment of payment order
(a) A communication of the sender of a payment order cancelling or amending the order may be transmitted to the receiving bank orally, electronically, or...
- Section 7-4A-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...
- Part 3 Execution of Sender's Payment Order by Receiving Bank.
- Part 4 Payment.
- Section 7-4A-401 Payment date
"Payment date" of a payment order means the day on which the amount of the order is payable to the beneficiary by the beneficiary's bank....
- Section 7-4A-402 Obligation of sender to pay receiving bank
(a) This section is subject to Sections 7-4A-205 and 7-4A-207. (b) With respect to a payment order issued to the beneficiary's bank, acceptance of the...
- Section 7-4A-403 Payment by sender to receiving bank
(a) Payment of the sender's obligation under Section 7-4A-402 to pay the receiving bank occurs as follows: (1) If the sender is a bank, payment...
- Section 7-4A-404 Obligation of beneficiary's bank to pay and give notice to beneficiary
(a) Subject to Sections 7-4A-211(e), 7-4A-405(d), and 7-4A-405(e), if a beneficiary's bank accepts a payment order, the bank is obliged to pay the amount of...
- Section 7-4A-405 Payment by beneficiary's bank to beneficiary
(a) If the beneficiary's bank credits an account of the beneficiary of a payment order, payment of the bank's obligation under Section 7-4A-404(a) occurs when...
- Section 7-4A-406 Payment by originator to beneficiary; discharge of underlying obligation
(a) Subject to Sections 7-4A-211(e), 7-4A-405(d), and 7-4A-405(e), the originator of a funds transfer pays the beneficiary of the originator's payment order (i) at the...
- Part 5 Miscellaneous Provisions.
- Section 7-4A-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...
- Section 7-4A-502 Creditor process served on receiving bank; setoff by beneficiary's bank
(a) As used in this section, "creditor process" means levy, attachment, garnishment, notice of lien, sequestration, or similar process issued by, or on behalf of...
- Section 7-4A-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...
- Section 7-4A-504 Order in which items and payment orders may be charged to account; order of withdrawals from account
(a) If a receiving bank has received more than one payment order of the sender or one or more payment orders and other items that...
- Section 7-4A-505 Preclusion of objection to debit of customer's account
If a receiving bank has received payment from its customer with respect to a payment order issued in the name of the customer as sender...
- Section 7-4A-506 Rate of interest
(a) If, under this article, a receiving bank is obliged to pay interest with respect to a payment order issued to the bank, the amount...
- Section 7-4A-507 Choice of law
(a) The following rules apply unless the affected parties otherwise agree or subsection (c) applies: (1) The rights and obligations between the sender of a...
- Part 6 Uniformity.
Last modified: May 3, 2021