§ 554.12209

554.12209 Acceptance of payment order. 1. Subject to subsection 4, a receiving bank other than the beneficiary’s bank accepts a payment order when it executes the order. 2. Subject to subsections 3 and 4, a beneficiary’s bank accepts a payment order at the earliest of the following times: a. When the bank pays the beneficiary as stated in section 554.12405, subsection 1 or 2, or notifies the beneficiary of receipt of the order or that the account of the beneficiary hasbeen credited with respect to the order, unless the notice indicates that the bank is rejectingthe order or that funds with respect to the order may not be withdrawn or used until receiptof payment from the sender of the order; b. When the bank receives payment of the entire amount of the sender’s order pursuant to section 554.12403, subsection 1, paragraph 'a' or 'b'; or c. The opening of the next funds-transfer business day of the bank following the payment date of the order if, at that time, the amount of the sender’s order is fully covered by awithdrawable credit balance in an authorized account of the sender or the bank has otherwisereceived full payment from the sender, unless the order was rejected before that

order is fully covered by awithdrawable credit balance in an authorized account of the sender or the bank has otherwisereceived full payment from the sender, unless the order was rejected before that time or isrejected within one hour after that time, or one hour after the opening of the next business dayof the sender following the payment date if the time is later. If notice of rejection is receivedby the sender after the payment date and the authorized account of the sender does not bearinterest, the bank shall pay interest to the sender on the amount of the order for the numberof days elapsing after the payment date to the day the sender receives notice or learns thatthe order was not accepted, counting the day that notice is received as an elapsed day. Ifthe withdrawable credit balance during that period falls below the amount of the order, theamount of interest payable is reduced accordingly. 3. Acceptance of a payment order cannot occur before the order is received by the receiving bank. Acceptance does not occur under subsection 2, paragraph 'b' or 'c', if thebeneficiary of the payment order does not have an account with the receiving bank, theaccount has been closed, or

iving bank. Acceptance does not occur under subsection 2, paragraph 'b' or 'c', if thebeneficiary of the payment order does not have an account with the receiving bank, theaccount has been closed, or the receiving bank is not permitted by law to receive credits forthe beneficiary’s account. 4. A payment order issued to the originator’s bank cannot be accepted until the payment date if the bank is the beneficiary’s bank, or the execution date if the bank is not thebeneficiary’s bank. If the originator’s bank executes the originator’s payment order beforethe execution date or pays the beneficiary of the originator’s payment order before thepayment date and the payment order is subsequently canceled pursuant to section 554.12211,subsection 2, the bank may recover from the beneficiary any payment received to the extentallowed by the law governing mistake and restitution. 92 Acts, ch 1146, §17Referred to in §554.12105, 554.12212, 554.12302 Sat Dec 23 11:02:52 2023 Iowa Code 2024, Section 554.12209 (26, 0)