Texas Business And Commerce Code Title 1, Chapter 4a - Funds Transfers

SUBCHAPTER A SUBJECT MATTER AND DEFINITIONS

• Texas Section 4A.101 - Short Title
  This chapter may be cited as Uniform Commercial Code--Funds Transfers. Added by Acts 1993, 73rd Leg., ch. 570, Sec. 7, eff. Sept. 1, 1993.
• Texas Section 4A.102 - Subject Matter
  Except as otherwise provided in Section 4A.108, this chapter applies to funds transfers defined in Section 4A.104. Added by Acts 1993, 73rd Leg., ch. 570,...
• Texas Section 4A.103 - Payment Order--definitions
  (a) In this chapter: (1) "Payment order" means an instruction of a sender to a receiving bank, transmitted orally, electronically, or in writing, to pay,...
• Texas Section 4A.104 - Funds Transfer--definitions
  In this chapter: (1) "Funds transfer" means the series of transactions, beginning with the originator's payment order, made for the purpose of making payment to...
• Texas Section 4A.105 - Other Definitions
  (a) In this chapter: (1) "Authorized account" means a deposit account of a customer in a bank designated by the customer as a source of...
• Texas Section 4A.106 - Time Payment Order Is Received
  (a) The time of receipt of a payment order or communication cancelling or amending a payment order is determined by the rules applicable to receipt...
• Texas Section 4A.107 - Federal Reserve Regulations And Operating Circulars
  Regulations of the Board of Governors of the Federal Reserve System and operating circulars of the Federal Reserve Banks supersede any inconsistent provision of this...

SUBCHAPTER B ISSUE AND ACCEPTANCE OF PAYMENT ORDER

• Texas Section 4A.108 - Relationship To Electronic Fund Transfer Act
  (a) Except as provided in Subsection (b), this chapter does not apply to a funds transfer any part of which is governed by the Electronic...
• Texas Section 4A.201 - Security Procedure
  "Security procedure" means a procedure established by an agreement between a customer and a receiving bank for the purpose of (i) verifying that a payment...
• Texas Section 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...
• Texas Section 4A.203 - Unenforceability Of Certain Verified Payment Orders
  (a) If an accepted payment order is not, under Section 4A.202(a), an authorized order of a customer identified as sender, but is effective as an...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...

SUBCHAPTER C EXECUTION OF SENDERS PAYMENT ORDER BY RECEIVING BANK

• Texas Section 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...
• Texas Section 4A.301 - Execution And Execution Date
  (a) A payment order is "executed" by the receiving bank when it issues a payment order intended to carry out the payment order received by...
• Texas Section 4A.302 - Obligations Of Receiving Bank In Execution Of Payment Order
  (a) Except as provided in Subsections (b) through (d), if the receiving bank accepts a payment order pursuant to Section 4A.209(a), the bank has the...
• Texas Section 4A.303 - Erroneous Execution Of Payment Order
  (a) A receiving bank that (i) executes the payment order of the sender by issuing a payment order in an amount greater than the amount...
• Texas Section 4A.304 - Duty Of Sender To Report Erroneously Executed Payment Order
  If the sender of a payment order that is erroneously executed as stated in Section 4A.303 receives notification from the receiving bank that the order...

SUBCHAPTER D PAYMENT

• Texas Section 4A.305 - Liability For Late Or Improper Execution Or Failure To Execute Payment Order
  (a) If a funds transfer is completed but execution of a payment order by the receiving bank in breach of Section 4A.302 of this chapter...
• Texas Section 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....
• Texas Section 4A.402 - Obligation Of Sender To Pay Receiving Bank
  (a) This section is subject to Sections 4A.205 and 4A.207. (b) With respect to a payment order issued to the beneficiary's bank, acceptance of the...
• Texas Section 4A.403 - Payment By Sender To Receiving Bank
  (a) Payment of the sender's obligation under Section 4A.402 to pay the receiving bank occurs as follows: (1) If the sender is a bank, payment...
• Texas Section 4A.404 - Obligation Of Beneficiary's Bank To Pay And Give Notice To Beneficiary
  (a) Subject to Sections 4A.211(e) and 4A.405(d) and (e), if a beneficiary's bank accepts a payment order, the bank is obliged to pay the amount...
• Texas Section 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 4A.404(a) occurs when...

SUBCHAPTER E MISCELLANEOUS PROVISIONS

• Texas Section 4A.406 - Payment By Originator To Beneficiary; Discharge Of Underlying Obligation
  (a) Subject to Sections 4A.211(e) and 4A.405(d) and (e), the originator of a funds transfer pays the beneficiary of the originator's payment order: (1) at...
• Texas Section 4A.501 - Variation By Agreement And Effect Of Funds Transfer System Rule
  (a) Except as otherwise provided in this chapter, the rights and obligations of a party to a funds transfer may be varied by agreement of...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 4A.506 - Rate Of Interest
  (a) If, under this chapter, a receiving bank is obliged to pay interest with respect to a payment order issued to the bank, the amount...
• Texas Section 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...

Last modified: September 28, 2016