California Commercial Code CHAPTER 2 - Issue and Acceptance of Payment Order

• Section 11201.
  “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 11202.
  (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 or...
• Section 11203.
  (a) If an accepted payment order is not, under subdivision (a) of Section 11202, an authorized order of a customer identified as sender, but is effective...
• Section 11204.
  (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 effective...
• Section 11205.
  (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 payment...
• Section 11206.
  (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 bank,...
• Section 11207.
  (a) Subject to subdivision (b), if, in a payment order received by the beneficiary’s bank, the name, bank account number, or other identification of the beneficiary...
• Section 11208.
  (a) This subdivision applies to a payment order identifying an intermediary bank or the beneficiary’s bank only by an identifying number.(1) The receiving bank may rely on...
• Section 11209.
  (a) Subject to subdivision (d), a receiving bank other than the beneficiary’s bank accepts a payment order when it executes the order.(b) Subject to subdivisions (c) and...
• Section 11210.
  (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 notice...
• Section 11211.
  (a) A communication of the sender of a payment order canceling or amending the order may be transmitted to the receiving bank orally, electronically, or in...
• Section 11212.
  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...

Last modified: October 22, 2018