The Abcs of the Ucc

by Baxter, Thomas C., Jr.

• ISBN13: 9781590314715
• ISBN10: 1590314719
• Edition: 2nd
• Format: Paperback
• Copyright: 2006-11-01
• Publisher: Amer Bar Assn

Summary

As an updated Second Edition, Article 4A Funds Transfer will walk you through each step of a large dollar, wholesale funds transfer, and explain the rights and obligations of each party in the transfer. It also explores what happens when things go wrong in a funds transfer, and how Article 4A assigns liability.

Table of Contents

Foreword	ix
Preface	xiii
Introduction to Article 4A	1	(18)
Nature of a Funds Transfer	2	(4)
Article 4A Terminology	6	(5)
The Parties to a Funds Transfer	6	(2)
The ``Payment Order''	8	(2)
The Funds Transfer	10	(1)
Consumer Exclusion	11	(1)
Funds Transfer Systems	12	(5)
Fedwire® Funds Service	12	(1)
CHIPS	13	(1)
ACH System	13	(1)
SWIFTNet	14	(3)
Variation by Agreement: Federal Reserve Regulations, Operating Circulars and Funds Transfer System Rules	17	(2)
Originator's and Intermediary Banks: Acceptance and Execution of Payment Orders	19	(24)
Receiving Bank's Right to Reject Payment Orders	20	(2)
Cancellation or Amendment of Payment Orders	22	(2)
Accepting Bank's Obligations	24	(5)
Execution and Execution Date	24	(1)
Duties of a Bank Executing a Payment Order	25	(1)
``Mirror Image'' Rule	26	(1)
Effect of a Payment Date	27	(1)
``Time and Manner'' Rule	27	(2)
Liability for Improper Execution - Consequential Damages	29	(3)
Settlement of the Sender's Payment Obligation	32	(5)
The Money-Back Guarantee	37	(6)
Beneficiary's Bank: Acceptance of Payment Orders	43	(12)
How the Bank Accepts a Payment Order	45	(2)
Payment to the Beneficiary	45	(1)
Notification of the Beneficiary	46	(1)
Acceptance of Payment from the Sender	46	(1)
Passive Acceptance by Ability to Debit Sender	46	(1)
Cancellation and Amendment of Payment Orders	47	(1)
The Money-Back Guarantee	48	(1)
Bank's Obligation to Pay the Beneficiary	48	(2)
Provisional Payment to the Beneficiary	50	(2)
Duty to Notify	52	(3)
Discharge of the Originator's Obligation to the Beneficiary	55	(6)
Liability for Fraud Losses	61	(8)
Verification Rule for Unauthorized Payment Orders	61	(6)
Commercially Reasonable Security Procedure	62	(3)
Compliance with Instructions and Acceptance in Good Faith	65	(1)
Ineffective Payment Orders under the Verification Rule	66	(1)
Interloper Fraud	67	(1)
Shortening the Period under the Statute of Repose	67	(2)
Liability for Errors	69	(18)
Sender Errors	70	(5)
Errors in the Alpha or Numeric Identification of the Beneficiary or a Receiving Bank	70	(1)
Single description, by name or number, of beneficiary	70	(1)
Single description, by number, of an intermediary or beneficiary bank	71	(1)
Dual description, by name and number, of beneficiary	71	(2)
Dual description, by name and number, of intermediary or beneficiary's bank	73	(1)
Security Procedures for the Detection of Errors	73	(2)
Erroneous Execution of Payment Orders	75	(4)
Transfer of Excessive or Deficient Amounts	75	(1)
Duplicate Transfers	76	(1)
Transfers to the Wrong Person	77	(1)
Duty to Report Erroneously Executed Payment Orders	78	(1)
Errors by the Beneficiary's Bank	79	(1)
Disclaiming the Bank's Liability for Its Errors	80	(5)
Disclaiming Liability for Late or Improper Execution	80	(1)
Disclaiming Liability for Payment to the Wrong Person	81	(1)
Disclaiming Liability for Other Execution Errors	81	(2)
Shortening the Period under the Statute of Repose	83	(1)
Disclaiming Liability for Errors by the Beneficiary's Bank	84	(1)
Restitution	85	(2)
Exclusion of Other Law When Article 4A Applies	87	(6)
Miscellaneous Provisions	93	(10)
Statute of Repose	93	(4)
Interest Compensation	97	(1)
Set-off and Priority	98	(3)
Choice of Law	101	(2)
Glossary	103	(4)
Bibliography	107	(4)
About the Authors	111