28-4-637. RATE OF INTEREST. (1) If, under this part, a receiving bank is obliged to pay interest with respect to a payment order issued to the bank, the amount payable may be determined:
(a) by agreement of the sender and receiving bank, or
(b) by a funds-transfer system rule if the payment order is transmitted through a funds-transfer system.
(2) If the amount of interest is not determined by an agreement or rule as stated in subsection (1) of this section, the amount is calculated by multiplying the applicable federal funds rate by the amount on which interest is payable, and then multiplying the product by the number of days for which interest is payable. The applicable federal funds rate is the average of the federal funds rates published by the Federal Reserve bank of New York for each of the days for which interest is payable divided by three hundred and sixty (360). The federal funds rate for any day on which a published rate is not available is the same as the published rate for the next preceding day for which there is a published rate. If a receiving bank that accepted a payment order is required to refund payment to the sender of the order because the funds transfer was not completed, but the failure to complete was not due to any fault by the bank, the interest payable is reduced by a percentage equal to the reserve requirement on deposits of the receiving bank.
History:
[28-4-637, added 1991, ch. 135, sec. 1, p. 316.]
Structure Idaho Code
Title 28 - COMMERCIAL TRANSACTIONS
Chapter 4 - UNIFORM COMMERCIAL CODE — BANK DEPOSITS AND COLLECTIONS
Section 28-4-601 - SHORT TITLE.
Section 28-4-602 - SUBJECT MATTER.
Section 28-4-603 - PAYMENT ORDER — DEFINITIONS.
Section 28-4-604 - FUNDS TRANSFER — DEFINITIONS.
Section 28-4-605 - OTHER DEFINITIONS.
Section 28-4-606 - TIME PAYMENT ORDER IS RECEIVED.
Section 28-4-607 - FEDERAL RESERVE REGULATIONS AND OPERATING CIRCULARS.
Section 28-4-608 - RELATIONSHIP TO ELECTRONIC FUND TRANSFER ACT.
Section 28-4-609 - SECURITY PROCEDURE.
Section 28-4-610 - AUTHORIZED AND VERIFIED PAYMENT ORDERS.
Section 28-4-611 - UNENFORCEABILITY OF CERTAIN VERIFIED PAYMENT ORDERS.
Section 28-4-613 - ERRONEOUS PAYMENT ORDERS.
Section 28-4-615 - MISDESCRIPTION OF BENEFICIARY.
Section 28-4-616 - MISDESCRIPTION OF INTERMEDIARY BANK OR BENEFICIARY’S BANK.
Section 28-4-617 - ACCEPTANCE OF PAYMENT ORDER.
Section 28-4-618 - REJECTION OF PAYMENT ORDER.
Section 28-4-619 - CANCELLATION AND AMENDMENT OF PAYMENT ORDER.
Section 28-4-620 - LIABILITY AND DUTY OF RECEIVING BANK REGARDING UNACCEPTED PAYMENT ORDER.
Section 28-4-621 - EXECUTION AND EXECUTION DATE.
Section 28-4-622 - OBLIGATIONS OF RECEIVING BANK IN EXECUTION OF PAYMENT ORDER.
Section 28-4-623 - ERRONEOUS EXECUTION OF PAYMENT ORDER.
Section 28-4-624 - DUTY OF SENDER TO REPORT ERRONEOUSLY EXECUTED PAYMENT ORDER.
Section 28-4-625 - LIABILITY FOR LATE OR IMPROPER EXECUTION OR FAILURE TO EXECUTE PAYMENT ORDER.
Section 28-4-626 - PAYMENT DATE.
Section 28-4-627 - OBLIGATION OF SENDER TO PAY RECEIVING BANK.
Section 28-4-628 - PAYMENT BY SENDER TO RECEIVING BANK.
Section 28-4-629 - OBLIGATION OF BENEFICIARY’S BANK TO PAY AND GIVE NOTICE TO BENEFICIARY.
Section 28-4-630 - PAYMENT BY BENEFICIARY’S BANK TO BENEFICIARY.
Section 28-4-631 - PAYMENT BY ORIGINATOR TO BENEFICIARY — DISCHARGE OF UNDERLYING OBLIGATION.
Section 28-4-632 - VARIATION BY AGREEMENT AND EFFECT OF FUNDS-TRANSFER SYSTEM RULE.
Section 28-4-633 - CREDITOR PROCESS SERVED ON RECEIVING BANK — SETOFF BY BENEFICIARY’S BANK.
Section 28-4-634 - INJUNCTION OR RESTRAINING ORDER WITH RESPECT TO FUNDS TRANSFER.
Section 28-4-636 - PRECLUSION OF OBJECTION TO DEBIT OF CUSTOMER’S ACCOUNT.