§ 4A—210. Rejection of payment order
(a) 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.
(b) 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 4A—211(d) of this title 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.
(c) If a receiving bank suspends payments, all unaccepted payment orders issued to it are deemed rejected at the time the bank suspends payments.
(d) Acceptance of a payment order precludes a later rejection of the order. Rejection of a payment order precludes a later acceptance of the order. (Added 1993, No. 158 (Adj. Sess.), § 14, eff. Jan. 1, 1995.)
Structure Vermont Statutes
Title 9A - Uniform Commercial Code
§ 4A—103. Payment order—definitions
§ 4A—104. Funds transfer—definitions
§ 4A—106. Time payment order is received
§ 4A—107. Federal Reserve regulations and operating circulars
§ 4A—108. Relationship to Electronic Fund Transfer Act
§ 4A—202. Authorized and verified payment orders
§ 4A—203. Unenforceability of certain verified payment orders
§ 4A—205. Erroneous payment orders
§ 4A—206. Transmission of payment order through funds-transfer or other communication system
§ 4A—207. Misdescription of beneficiary
§ 4A—208. Misdescription of intermediary bank or beneficiary’s bank
§ 4A—209. Acceptance of payment order
§ 4A—210. Rejection of payment order
§ 4A—211. Cancellation and amendment of payment order
§ 4A—212. Liability and duty of receiving bank regarding unaccepted payment order
§ 4A—301. Execution and execution date
§ 4A—302. Obligations of receiving bank in execution of payment order
§ 4A—303. Erroneous execution of payment order
§ 4A—304. Duty of sender to report erroneously executed payment order
§ 4A—305. Liability for late or improper execution or failure to execute payment order
§ 4A—402. Obligation of sender to pay receiving bank
§ 4A—403. Payment by sender to receiving bank
§ 4A—404. Obligation of beneficiary’s bank to pay and give notice to beneficiary
§ 4A—405. Payment by beneficiary’s bank to beneficiary
§ 4A—406. Payment by originator to beneficiary; discharge of underlying obligation
§ 4A—501. Variation by agreement and effect of funds-transfer system rule
§ 4A—502. Creditor process served on receiving bank; setoff by beneficiary’s bank
§ 4A—503. Injunction or restraining order with respect to funds transfer
§ 4A—505. Preclusion of objection to debit of customer’s account