Michigan Compiled Laws 174-1962-4a-2 Part 2 Issue And Acceptance Of Payment Order (440.4701...440.4712)

• Section 440.4701 “security Procedure” Defined.
  “Security procedure” means a procedure established by agreement of a customer and a receiving bank for the purpose of (i) verifying that a payment...
• Section 440.4702 Authorized Payment Order; Verification By Security Procedure; Determination Of Commercial Reasonableness; “sender” Defined; Applicability Of Section To Amendments And Cancellations Of Payment Orders; Agreement To Vary Rights And Obligations Prohibited.
  (1) A payment order received by the receiving bank is the authorized order of the person identified as sender if that person authorized the...
• Section 440.4703 Payment Order Effective Pursuant To Mcl 440.4702; Application Of Rules; Applicability Of Section To Amendments Of Payment Orders.
  (1) If an accepted payment order is not, under section 4A202(1), an authorized order of a customer identified as sender, but is effective as...
• Section 440.4704 Receiving Bank; Acceptance Of Unauthorized Or Nonenforceable Payment; Refund; Interest; Recovery; Reasonable Time Fixed By Agreement; Agreement To Vary Obligation To Refund Payment Prohibited.
  (1) If a receiving bank accepts a payment order issued in the name of its customer as sender which is (i) not authorized and...
• Section 440.4705 Erroneous Payment Order; Duty And Liability Of Sender Upon Notification From Receiving Bank; Applicability Of Section To Amendments To Payment Orders.
  (1) If an accepted payment order was transmitted pursuant to a security procedure for the detection of error and the payment order (i) erroneously...
• Section 440.4706 Transmitting Payment Order To Funds-transfer System Or Other Third-party Communication System; System As Agent; Effect Of Discrepancy; Applicability Of Section.
  (1) 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...
• Section 440.4707 Payment Order; Identification Of Beneficiary; Nonexistent Or Unidentifiable Person Or Account; Name And Number Identifying Different Persons; Inconsistent Identification By Name And Number; Recovery Of Amount Paid.
  (1) Subject to subsection (2), if, in a payment order received by the beneficiary's bank, the name, bank account number, or other identification of...
• Section 440.4708 Payment Order; Identification Of Intermediary Or Beneficiary Bank; Rules.
  (1) The following rules apply to a payment order identifying an intermediary bank or the beneficiary's bank only by an identifying number: (a) The...
• Section 440.4709 Acceptance Of Payment Order.
  (1) Subject to subsection (4), a receiving bank other than the beneficiary's bank accepts a payment order when it executes the order. (2) Subject...
• Section 440.4710 Rejection Of Payment Order.
  (1) A payment order is rejected by the receiving bank by a notice of rejection transmitted to the sender orally, electronically, or in writing....
• Section 440.4711 Communication By Sender Canceling Or Amending Payment Order; Method Of Transmission; Effectiveness; Liability Of Sender For Loss And Expenses; Revocation By Death Or Legal Incapacity; Effectiveness Of Funds-transfer System Rule.
  (1) A communication of the sender of a payment order canceling or amending the order may be transmitted to the receiving bank orally, electronically,...
• Section 440.4712 Receiving Bank; Failure To Accept Payment Order; Liability For Breach Of Agreement To Accept 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...

Last modified: October 10, 2016