History: P.A. 05-109 amended Subsec. (a) by deleting definition of "good faith" and making technical changes to
conform to revisions made to article 1 by the same act.
Sec. 42a-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 of a notice stated in section 42a-1-202. A receiving
bank may fix a cutoff time or times on a funds-transfer business day for the receipt and
processing of payment orders and communications cancelling or amending payment
orders. Different cutoff times may apply to payment orders, cancellations, or amendments, or to different categories of payment orders, cancellations, or amendments. A
cutoff time may apply to senders generally or different cutoff times may apply to different senders or categories of payment orders. If a payment order or communication cancelling or amending a payment order is received after the close of a funds-transfer business day or after the appropriate cutoff time on a funds-transfer business day, the
receiving bank may treat the payment order or communication as received at the opening
of the next funds-transfer business day.
(b) If this article refers to an execution date or payment date or states a day on which
a receiving bank is required to take action, and the date or day does not fall on a funds-transfer business day, the next day that is a funds-transfer business day is treated as the
date or day stated, unless the contrary is stated in this article.
(P.A. 90-202, S. 1(4A-106), 3; P.A. 05-109, S. 32.)
History: P.A. 05-109 amended Subsec. (a) by replacing reference to Sec. 42a-1-201(27) with reference to Sec. 42a-1-202 to conform to revisions made to article 1 by the same act.
PART 2
ISSUE AND ACCEPTANCE OF PAYMENT ORDER
Sec. 42a-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 effective
as the order of the customer under section 42a-4A-202, or (ii) not enforceable, in whole
or in part, against the customer under section 42a-4A-203, the bank shall refund any
payment of the payment order received from the customer to the extent the bank is not
entitled to enforce payment and shall pay interest on the refundable amount calculated
from the date the bank received payment to the date of the refund. However, the customer
is not entitled to interest from the bank on the amount to be refunded if the customer
fails to exercise ordinary care to determine that the order was not authorized by the
customer and to notify the bank of the relevant facts within a reasonable time not exceeding ninety days after the date the customer received notification from the bank that
the order was accepted or that the customer's account was debited with respect to the
order. The bank is not entitled to any recovery from the customer on account of a failure
by the customer to give notification as stated in this section.
(b) Reasonable time under subsection (a) of this section may be fixed by agreement
as stated in subsection (b) of section 42a-1-302, but the obligation of a receiving bank
to refund payment as stated in subsection (a) of this section may not otherwise be varied
by agreement.
(P.A. 90-202, S. 1(4A-204), 3; P.A. 03-278, S. 95; P.A. 05-109, S. 33.)
History: P.A. 03-278 made technical changes in Subsec. (b), effective July 9, 2003; P.A. 05-109 amended Subsec. (b)
by replacing reference to Sec. 42a-1-204(1) with reference to Sec. 42a-1-302(b) to conform to revisions made to article 1
by the same act.