74A.1010 Short title
This chapter may be cited as Uniform Commercial Code–Funds Transfers.
Oregon Revised Statutes
Chapter 74A — Funds Transfers
38 sections74A.1020 Subject matter
Except as otherwise provided in ORS 74A.1080, this chapter applies to funds transfers defined in ORS 74A.1040.
74A.1030 Payment order; definitions
As used in this chapter: “Beneficiary” means the person to be paid by the beneficiary’s bank. “Beneficiary’s bank” means the bank identified in a payment order in which an account for the beneficiary is to be credited pursuant to the order or which otherwise is to make payment to the beneficiary if the order does not provide for payment to an account. “Pa…
74A.1040 Funds transfer; definitions
As used in this chapter: “Funds transfer” means the series of transactions, beginning with the originator’s payment order, made for the purpose of making payment to the beneficiary of the order. The term includes any payment order issued by the originator’s bank or an intermediary bank intended to carry out the originator’s payment order. A funds transfer i…
74A.1050 Other definitions
As used in this chapter: “Authorized account” means a deposit account of a customer in a bank designated by the customer as a source of payment of payment orders issued by the customer to the bank. If a customer does not so designate an account, any account of the customer is an authorized account if payment of a payment order from that account is not incon…
74A.1060 Time payment order is received
The time of receipt of a payment order or communication canceling or amending a payment order is determined by the rules applicable to receipt of a notice stated in ORS 71.2020. A receiving bank may fix a cutoff time or times on a funds-transfer business day for the receipt and processing of payment orders and communications canceling or amending payment ord…
74A.1070 Federal Reserve regulations and operating circulars
Regulations of the Board of Governors of the Federal Reserve System and operating circulars of the Federal Reserve Banks supersede any inconsistent provision of this chapter to the extent of the inconsistency.
74A.1080 Exclusion of consumer transactions covered by federal law; remittance transfers
Except as provided in subsection (2) of this section, this chapter does not apply to a funds transfer any part of which is governed by the Electronic Fund Transfer Act of 1978 (Title XX, P.L. 95.630, 92 Stat. 3728, 15 U.S.C. 1693 et seq.). This chapter applies to a funds transfer that is a remittance transfer, as defined in 15 U.S.C. 1693o-1, unless the rem…
74A.2010 Security procedure
“Security procedure” means a procedure established by agreement of a customer and a receiving bank for the purpose of: Verifying that a payment order or communication amending or canceling a payment order is that of the customer; or Detecting error in the transmission or the content of the payment order or communication. A security procedure may impose an…
74A.2020 Authorized and verified payment orders
A payment order received by the receiving bank is the authorized order of the person identified as sender if that person authorized the order or is otherwise bound by it under the law of agency. If a bank and its customer have agreed that the authenticity of payment orders issued to the bank in the name of the customer as sender will be verified pursuant to…
74A.2030 Unenforceability of certain verified payment orders
If an accepted payment order is not, under ORS 74A.2020, an authorized order of a customer identified as sender, but is effective as an order of the customer pursuant to ORS 74A.2020, the following rules apply: By express agreement evidenced by a record, the receiving bank may limit the extent to which it is entitled to enforce or retain payment of the paym…
74A.2040 Refund of payment and duty of customer to report with respect to unauthorized payment order
If a receiving bank accepts a payment order issued in the name of its customer as sender which is not authorized and not effective as the order of the customer under ORS 74A.2020 or not enforceable, in whole or in part, against the customer under ORS 74A.2030, the bank shall refund any payment of the payment order received from the customer to the extent the…
74A.2050 Erroneous payment orders
The rules stated in subsection (2) of this section apply if an accepted payment order was transmitted pursuant to a security procedure for the detection of error and the payment order: Erroneously instructed payment to a beneficiary not intended by the sender; Erroneously instructed payment in an amount greater than the amount intended by the sender; or W…
74A.2060 Transmission of payment order through funds transfer or other communication system
If a payment order addressed to a receiving bank is transmitted to a funds-transfer system or other third-party communication system for transmittal to the bank, the system is deemed to be an agent of the sender for the purpose of transmitting the payment order to the bank. If there is a discrepancy between the terms of the payment order transmitted to the s…
74A.2070 Misdescription of beneficiary
Subject to subsection (2) of this section, if, in a payment order received by the beneficiary’s bank, the name, bank account number, or other identification of the beneficiary refers to a nonexistent or unidentifiable person or account, no person has rights as a beneficiary of the order and acceptance of the order cannot occur. If a payment order received b…
74A.2080 Misdescription of intermediary bank or beneficiary’s bank
This subsection applies to a payment order identifying an intermediary bank or the beneficiary’s bank only by an identifying number. The receiving bank may rely on the number as the proper identification of the intermediary or beneficiary’s bank and need not determine whether the number identifies a bank. The sender is obliged to compensate the receiving b…
74A.2090 Acceptance of payment order
Subject to subsection (4) of this section, a receiving bank other than the beneficiary’s bank accepts a payment order when it executes the order. Subject to subsections (3) and (4) of this section, a beneficiary’s bank accepts a payment order at the earliest of the following times: When the bank: Pays the beneficiary as stated in ORS 74A.4050 (1)(a) or (2…
74A.2100 Rejection of payment order
A payment order is rejected by the receiving bank by a notice of rejection transmitted to the sender orally or in a record. 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 transmissi…
74A.2110 Cancellation and amendment of payment order
A communication of the sender of a payment order canceling or amending the order may be transmitted to the receiving bank orally or in a record. If a security procedure is in effect between the sender and the receiving bank, the communication is not effective to cancel or amend the order unless the communication is verified pursuant to the security procedure…
74A.2120 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 …
74A.3010 Execution and execution date
A payment order is “executed” by the receiving bank when it issues a payment order intended to carry out the payment order received by the bank. A payment order received by the beneficiary’s bank can be accepted but cannot be executed. “Execution date” of a payment order means the day on which the receiving bank may properly issue a payment order in executi…
74A.3020 Obligations of receiving bank in execution of payment order
Except as provided in subsections (2) to (4) of this section, if the receiving bank accepts a payment order pursuant to ORS 74A.2090 (1), the bank has the following obligations in executing the order: The receiving bank is obliged to issue, on the execution date, a payment order complying with the sender’s order and to follow the sender’s instructions conce…
74A.3030 Erroneous execution of payment order
A receiving bank that executes the payment order of the sender by issuing a payment order in an amount greater than the amount of the sender’s order, or issues a payment order in execution of the sender’s order and then issues a duplicate order, is entitled to payment of the amount of the sender’s order under ORS 74A.4020 (3) if that subsection is otherwise …
74A.3040 Duty of sender to report erroneously executed payment order
If the sender of a payment order that is erroneously executed as stated in ORS 74A.3030 receives notification from the receiving bank that the order was executed or that the sender’s account was debited with respect to the order, the sender has a duty to exercise ordinary care to determine, on the basis of information available to the sender, that the order …
74A.3050 Liability for late or improper execution or failure to execute payment order
If a funds transfer is completed but execution of a payment order by the receiving bank in breach of ORS 74A.3020 results in delay in payment to the beneficiary, the bank is obliged to pay interest to either the originator or the beneficiary of the funds transfer for the period of delay caused by the improper execution. Except as provided in subsection (3) o…
74A.4010 Payment date
“Payment date” of a payment order means the day on which the amount of the order is payable to the beneficiary by the beneficiary’s bank. The payment date may be determined by instruction of the sender but cannot be earlier than the day the order is received by the beneficiary’s bank and, unless otherwise determined, is the day the order is received by the b…
74A.4020 Obligation of sender to pay receiving bank
This section is subject to ORS 74A.2050 and 74A.2070. With respect to a payment order issued to the beneficiary’s bank, acceptance of the order by the bank obliges the sender to pay the bank the amount of the order, but payment is not due until the payment date of the order. This subsection is subject to subsection (5) of this section and to ORS 74A.3030. …
74A.4030 Payment by sender to receiving bank
Payment of the sender’s obligation under ORS 74A.4020 to pay the receiving bank occurs as follows: If the sender is a bank, payment occurs when the receiving bank receives final settlement of the obligation through a Federal Reserve Bank or through a funds-transfer system. If the sender is a bank and the sender credited an account of the receiving bank wit…
74A.4040 Obligation of beneficiary’s bank to pay and give notice to beneficiary
Subject to ORS 74A.2110 (5) and 74A.4050 (4) and (5), if a beneficiary’s bank accepts a payment order, the bank is obliged to pay the amount of the order to the beneficiary of the order. Payment is due on the payment date of the order, but if acceptance occurs on the payment date after the close of the funds-transfer business day of the bank, payment is due …
74A.4050 Payment by beneficiary’s bank to beneficiary
If the beneficiary’s bank credits an account of the beneficiary of a payment order, payment of the bank’s obligation under ORS 74A.4040 (1) occurs when and to the extent: The beneficiary is notified of the right to withdraw the credit; The bank lawfully applies the credit to a debt of the beneficiary; or Funds with respect to the order are otherwise made …
74A.4060 Payment by originator to beneficiary; discharge of underlying obligation
Subject to ORS 74A.2110 (5) and 74A.4050 (4) and (5), the originator of a funds transfer pays the beneficiary of the originator’s payment order: At the time a payment order for the benefit of the beneficiary is accepted by the beneficiary’s bank in the funds transfer; and In an amount equal to the amount of the order accepted by the beneficiary’s bank, but…
74A.5010 Variation by agreement and effect of funds-transfer system rule
Except as otherwise provided in this chapter, the rights and obligations of a party to a funds transfer may be varied by agreement of the affected party. “Funds-transfer system rule” means a rule of an association of banks: Governing transmission of payment orders by means of a funds-transfer system of the association or rights and obligations with respect…
74A.5020 Creditor process served on receiving bank; setoff by beneficiary’s bank
As used 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. This subsection applies to creditor process with respect to an authorized account of the sender of a payment order if the creditor process is serv…
74A.5030 Injunction or restraining order with respect to funds transfer
For proper cause and in compliance with applicable law, a court may restrain: A person from issuing a payment order to initiate a funds transfer; An originator’s bank from executing the payment order of the originator; or The beneficiary’s bank from releasing funds to the beneficiary or the beneficiary from withdrawing the funds. A court may not otherwis…
74A.5040 Order in which items and payment orders may be charged to account; order of withdrawals from account
If a receiving bank has received more than one payment order of the sender or one or more payment orders and other items that are payable from the sender’s account, the bank may charge the sender’s account with respect to the various orders and items in any sequence. In determining whether a credit to an account has been withdrawn by the holder of the accou…
74A.5050 Preclusion of objection to debit of customer’s account
If a receiving bank has received payment from its customer with respect to a payment order issued in the name of the customer as sender and accepted by the bank, and the customer received notification reasonably identifying the order, the customer is precluded from asserting that the bank is not entitled to retain the payment unless the customer notifies the…
74A.5060 Rate of interest
If, under this chapter, a receiving bank is obliged to pay interest with respect to a payment order issued to the bank, the amount payable may be determined: By agreement of the sender and receiving bank; or By a funds-transfer system rule if the payment order is transmitted through a funds-transfer system. If the amount of interest is not determined by a…
74A.5070 Choice of law
The following rules apply unless the affected parties otherwise agree or subsection (3) of this section applies: The rights and obligations between the sender of a payment order and the receiving bank are governed by the law of the jurisdiction in which the receiving bank is located. The rights and obligations between the beneficiary’s bank and the benefic…