KANSAS OFFICE of
  REVISOR of STATUTES

  

Home >> Statutes >> Back


Click to open printable format in new window.Printable Format
 | Next

84-4a-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 subsections (c) and (d), a beneficiary's bank accepts a payment order at the earliest of the following times:

(1) When the bank: (i) Pays the beneficiary as stated in subsection (a) or (b) of K.S.A. 84-4a-405; or (ii) notifies the beneficiary of receipt of the order or that the account of the beneficiary has been credited with respect to the order unless the notice indicates that the bank is rejecting the order or that funds with respect to the order may not be withdrawn or used until receipt of payment from the sender of the order;

(2) when the bank receives payment of the entire amount of the sender's order pursuant to subsection (a)(1) or (2) of K.S.A. 84-4a-403; or

(3) the opening of the next funds-transfer business day of the bank following the payment date of the order if, at that time, the amount of the sender's order is fully covered by a withdrawable credit balance in an authorized account of the sender or the bank has otherwise received full payment from the sender, unless the order was rejected before that time or is rejected within: (i) One hour after that time; or (ii) one hour after the opening of the next business day of the sender following the payment date if that time is later. If notice of rejection is received by the sender after the payment date and the authorized account of the sender does not bear interest, the bank is obliged to pay interest to the sender on the amount of the order for the number of days elapsing after the payment date to the day the sender receives notice or learns that the order was not accepted, counting that day as an elapsed day. If the withdrawable credit balance during that period falls below the amount of the order, the amount of interest payable is reduced accordingly.

(c) Acceptance of a payment order cannot occur before the order is received by the receiving bank. Acceptance does not occur under subsection (b)(2) or (3) if the beneficiary of the payment order does not have an account with the receiving bank, the account has been closed, or the receiving bank is not permitted by law to receive credits for the beneficiary's account.

(d) A payment order issued to the originator's bank cannot be accepted until the payment date if the bank is the beneficiary's bank or the execution date if the bank is not the beneficiary's bank. If the originator's bank executes the originator's payment order before the execution date or pays the beneficiary of the originator's payment order before the payment date and the payment order is subsequently canceled pursuant to subsection (b) of K.S.A. 84-4a-211, the bank may recover from the beneficiary any payment received to the extent allowed by the law governing mistake and restitution.

History: L. 1990, ch. 367, § 17; L. 1991, ch. 294, § 12; July 1.

KANSAS COMMENT, 1996

This section is identical to the 1995 Official Text.

Acceptance generally obligates the beneficiary's bank to pay the beneficiary (84-4a-404) and discharges the obligation which prompted the funds transfer (84-4a-406). It generally cannot thereafter be cancelled. 84-4a-210(d). Acceptance by a receiving bank occurs when the bank executes the payment order. Acceptance by a beneficiary's bank occurs at the earliest of paying the beneficiary, notifying the beneficiary that the order was received or the account was credited, receiving payment of the payment order or, finally, the opening of the next business day after the sender bank has made the funds available to the beneficiary's bank and the beneficiary's bank has not rejected the order or fails to reject within one hour after the opening. Acceptance cannot occur before the payment date of the beneficiary's bank or the execution date of the originator's bank.


 | Next

CURRENT SESSION
  A Summary of Special Sessions in Kansas
  Bill Brief for Senate Bill No. 1
  Bill Brief for House Bill No. 2001

LEGISLATIVE COORDINATING COUNCIL
  6/03/2024 Meeting Notice Agenda
  LCC Policies

REVISOR OF STATUTES
  Chapter 72 Statute Transfer List
  Kansas School Equity & Enhancement Act
  Gannon v. State
  Information for Special Session 2021
  General Info., Legal Analysis & Research
  2023 Amended & Repealed Statutes
  2022 Amended & Repealed Statutes
  2021 Amended & Repealed Statutes
  2020 Amended & repealed Statutes
  2019 Amended & Repealed Statutes

USEFUL LINKS
Session Laws

OTHER LEGISLATIVE SITES
Kansas Legislature
Administrative Services
Division of Post Audit
Research Department