§ 4A—506. Rate of interest
(a) If, under this article, a receiving bank is obliged to pay interest with respect to a payment order issued to the bank, the amount payable may be determined (i) by agreement of the sender and receiving bank, or (ii) by a funds-transfer system rule if the payment order is transmitted through a funds-transfer system.
(b) If the amount of interest is not determined by an agreement or rule as stated in subsection (a) 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 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. (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