§ 355-4a-210

355.4A -210 Rejection of payment order. (1) (a) A payment order is rejected by the receiving bank by a notice of rejection transmitted to the sender orally or in a record. (b) A notice of rejection need not use any particular words and is sufficient if it indicates that the receiving bank is rejecting t he order or will not execute or pay the order. (c) Rejection is effective when the notice is given if transmission is by a means that is reasonable in the circumstances. (d) If notice of rejection is given by a means that is not reasonable, rejection is effective when the notice is received. (e) If an agreement of the sender and receiving bank establishes the means to be used to reject a payment order: 1. Any means complying with the agreement is reasonable; and 2. Any means not complying is not reasonable unless no significant delay in receipt of the notice resulted from the use of the noncomplying means. (2) (a) This subsection applies if a receiving bank other than the beneficiary's bank fails to execute a payment order despite the existence on the execut ion date of a withdrawable credit balance in an authorized account of the sender sufficient to cover the order.

beneficiary's bank fails to execute a payment order despite the existence on the execut ion date of a withdrawable credit balance in an authorized account of the sender sufficient to cover the order. (b) 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 elaps ing after the execution date to the earlier of the day the order is canceled pursuant to KRS 355.4A -211(4) 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 withd rawable credit balance during that period falls below the amount of the order, the amount of interest is reduced accordingly. (3) If a receiving bank suspends payments, all unaccepted payment orders issued to it are deemed rejected at the time the bank sus pends payments. (4) (a) Acceptance of a payment order precludes a later rejection of the order. (b) Rejection of a payment order precludes a later acceptance of the order.

ed at the time the bank sus pends payments. (4) (a) Acceptance of a payment order precludes a later rejection of the order. (b) Rejection of a payment order precludes a later acceptance of the order. Effective: January 1, 2025 History: Amended 2024 Ky. Acts ch. 10, sec. 32, effective January 1, 2025. -- Created 1992 Ky. Acts ch. 116, sec. 41, effective July 14, 1992.