Sec. 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 chapter, 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 chapter or by express agreement. Liability based on acceptance arises only when acceptance occurs as stated in Section 4A.209, and liability is limited to that provided in this chapter. 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 chapter or by express agreement.
Added by Acts 1993, 73rd Leg., ch. 570, Sec. 7, eff. Sept. 1, 1993.
Structure Texas Statutes
Title 1 - Uniform Commercial Code
Subchapter B. Issue and Acceptance of Payment Order
Section 4A.201. Security Procedure
Section 4A.202. Authorized and Verified Payment Orders
Section 4A.203. Unenforceability of Certain Verified Payment Orders
Section 4A.205. Erroneous Payment Orders
Section 4A.206. Transmission of Payment Order Through Funds Transfer or Other Communication System
Section 4A.207. Misdescription of Beneficiary
Section 4A.208. Misdescription of Intermediary Bank or Beneficiary's Bank
Section 4A.209. Acceptance of Payment Order
Section 4A.210. Rejection of Payment Order
Section 4A.211. Cancellation and Amendment of Payment Order
Section 4A.212. Liability and Duty of Receiving Bank Regarding Unaccepted Payment Order