355.4A -501 Variation by agreement and effect of funds -transfer system rule. (1) Except as otherwise provided in this article, the rights and obligations of a party to a funds transfer may be varied by agreement of the affected party. (2) 'Funds -transfer system rule' means a rule of an association of banks: (a) Governing transmission o f payment orders by means of a funds -transfer system of the association or rights and obligations with respect to those orders; or (b) To the extent the rule governs rights and obligations between banks that are parties to a funds transfer in which a Feder al Reserve Bank, acting as an intermediary bank, sends a payment order to the beneficiary's bank. Except as otherwise provided in this article, a funds -transfer system rule governing rights and obligations between participating banks using the system may b e effective even if the rule conflicts with this article and indirectly affects another party to the funds transfer who does not consent to the rule. A funds - transfer system rule may also govern rights and obligations of parties other than participating ba nks using the system to the extent stated in KRS 355.4A - 404(3), 355.4A -405(4), he rule. A funds - transfer system rule may also govern rights and obligations of parties other than participating ba nks using the system to the extent stated in KRS 355.4A - 404(3), 355.4A -405(4), and 355.4A -507(3). Effective: July 14, 1992 History: Created 1992 Ky. Acts ch. 116, sec. 55, effective July 14, 1992.
Kentucky Legal Code