New York Laws
Part 2 - Issue and Acceptance of Payment Order
4-A-210 - Rejection of Payment Order.

(1) A payment order is rejected by the receiving bank by a notice of
rejection transmitted to the sender orally, electronically, or in
writing. A notice of rejection need not use any particular words and is
sufficient if it indicates that the receiving bank is rejecting the
order or will not execute or pay the order. Rejection is effective when
the notice is given if transmission is by a means that is reasonable in
the circumstances. If notice of rejection is given by a means that is
not reasonable, rejection is effective when the notice is received. If
an agreement of the sender and receiving bank establishes the means to
be used to reject a payment order, (i) any means complying with the
agreement is reasonable and (ii) any means not complying is not
reasonable unless no significant delay in receipt of the notice resulted
from the use of the noncomplying means.
(2) This subsection applies if a receiving bank other than the
beneficiary's bank fails to execute a payment order despite the
existence on the execution date of a withdrawable credit balance in an
authorized account of the sender sufficient to cover the order. If the
sender does not receive notice of rejection of the order on the
execution 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 execution
date to the earlier of the day the order is cancelled pursuant to
subsection (4) of Section 4-A-211 or the day the sender receives notice
or learns that the order was not executed, counting the final day of the
period as an elapsed day. If the withdrawable credit balance during that
period falls below the amount of the order, the amount of interest is
reduced accordingly.
(3) If a receiving bank suspends payments, all unaccepted payment
orders issued to it are deemed rejected at the time the bank suspends
payments.
(4) Acceptance of a payment order precludes a later rejection of the
order. Rejection of a payment order precludes a later acceptance of the
order.