410.502 Creditor process served on receiving bank; setoff by beneficiary's bank.
(1) In this section, “creditor process" means levy, attachment, garnishment, notice of lien, sequestration, or similar process issued by or on behalf of a creditor or other claimant with respect to an account.
(2) This subsection applies to creditor process with respect to an authorized account of the sender of a payment order if the creditor process is served on the receiving bank. For the purpose of determining rights with respect to the creditor process, if the receiving bank accepts the payment order, the balance in the authorized account is considered to be reduced by the amount of the payment order to the extent the bank did not otherwise receive payment of the order, unless the creditor process is served at a time and in a manner affording the bank a reasonable opportunity to act on it before the bank accepts the payment order.
(3) If a beneficiary's bank has received a payment order for payment to the beneficiary's account in the bank, the following rules apply:
(a) The bank may credit the beneficiary's account. The amount credited may be set off against an obligation owed by the beneficiary to the bank or may be applied to satisfy creditor process served on the bank with respect to the account.
(b) The bank may credit the beneficiary's account and allow withdrawal of the amount credited unless creditor process with respect to the account is served at a time and in a manner affording the bank a reasonable opportunity to act to prevent withdrawal.
(c) If creditor process with respect to the beneficiary's account has been served and the bank has had a reasonable opportunity to act on it, the bank may not reject the payment order except for a reason unrelated to the service of process.
(4) Creditor process with respect to a payment by the originator to the beneficiary pursuant to a funds transfer may be served only on the beneficiary's bank with respect to the debt owed by that bank to the beneficiary. Any other bank served with the creditor process is not obliged to act with respect to the process.
History: 1991 a. 304.
Structure Wisconsin Statutes & Annotations
Wisconsin Statutes & Annotations
Chapter 410 - Uniform commercial code — funds transfers.
410.103 - Payment order; definitions.
410.104 - Funds transfer; definitions.
410.106 - Time payment order is received.
410.107 - Federal reserve regulations and operating circulars.
410.108 - Relationship to Electronic Fund Transfer Act.
410.202 - Authorized and verified payment orders.
410.203 - Unenforceability of certain verified payment orders.
410.205 - Erroneous payment orders.
410.206 - Transmission of payment order through funds-transfer or other communication system.
410.207 - Misdescription of beneficiary.
410.208 - Misdescription of intermediary bank or beneficiary's bank.
410.209 - Acceptance of payment order.
410.210 - Rejection of payment order.
410.211 - Cancellation and amendment of payment order.
410.212 - Liability and duty of receiving bank regarding unaccepted payment order.
410.301 - Execution and execution date.
410.302 - Obligations of receiving bank in execution of payment order.
410.303 - Erroneous execution of payment order.
410.304 - Duty of sender to report erroneously executed payment order.
410.305 - Liability for late or improper execution or failure to execute payment order.
410.402 - Obligation of sender to pay receiving bank.
410.403 - Payment by sender to receiving bank.
410.404 - Obligation of beneficiary's bank to pay and give notice to beneficiary.
410.405 - Payment by beneficiary's bank to beneficiary.
410.406 - Payment by originator to beneficiary; discharge of underlying obligation.
410.501 - Variation by agreement and effect of funds-transfer system rule.
410.502 - Creditor process served on receiving bank; setoff by beneficiary's bank.
410.503 - Injunction or restraining order with respect to funds transfer.
410.505 - Preclusion of objection to debit of customer's account.