Printable Format84-4a-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 of the agreement to the extent provided in the agreement or in this article, but does not otherwise have any duty to accept a payment order or, before acceptance, to take any action, or refrain from taking action, with respect to the order except as provided in this article or by express agreement. Liability based on acceptance arises only when acceptance occurs as stated in K.S.A. 84-4a-209 and liability is limited to that provided in this article. A receiving bank is not the agent of the sender or beneficiary of the payment order it accepts, or of any other party to the funds transfer, and the bank owes no duty to any party to the funds transfer except as provided in this article or by express agreement.
History: L. 1990, ch. 367, § 20; L. 1991, ch. 294, § 15; July 1.
KANSAS COMMENT, 1996
This section is identical to the 1995 Official Text.
A receiving bank is not required to accept a payment order unless it has otherwise agreed. But if it fails to accept or reject a payment order, and receives funds from the sender, it will be held to have accepted the payment order the next business day, and will be liable for interest. 84-4a-209(b)(3). If it does not accept a payment order and does not give notice of rejection to the sender, it may be liable for interest if the sender has an account in the receiving bank. 84-4a-210(b).