New York Laws
Part 2 - Issue and Acceptance of Payment Order
4-A-209 - Acceptance of Payment Order.

(1) Subject to subsection (4), a receiving bank other than the
beneficiary's bank accepts a payment order when it executes the order.
(2) Subject to subsections (3) and (4), a beneficiary's bank accepts a
payment order at the earliest of the following times:
(a) when the bank (i) pays the beneficiary as stated in
subsection (1) or (2) of Section 4-A-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withdrawn or used until receipt of payment from the sender of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;
(b) when the bank receives payment of the entire amount of the
sender's order pursuant to paragraph (a) or (b) of subsection
(1) of Section 4-A-403; or
(c) 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.
(3) Acceptance of a payment order cannot occur before the order is
received by the receiving bank. Acceptance does not occur under
paragraph (b) or (c) of subsection (2) 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.
(4) 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 cancelled
pursuant to subsection (2) of Section 4-A-211, the bank may recover from
the beneficiary any payment received to the extent allowed by the law
governing mistake and restitution.