Okla. Stat. tit. 12A § 4A-501

Current through Laws 2024, c. 453.

Section 4A-501 - Variation by agreement and effect of funds-transfer system rule

(a) 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.

(b) "Funds-transfer system rule" means a rule of an association of banks (i) governing transmission of payment orders by means of a funds-transfer system of the association or rights and obligations with respect to those orders, or (ii) to the extent the rule governs rights and obligations between banks that are parties to a funds transfer in which a Federal 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 be 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 banks using the system to the extent stated in subsection (c) of Section 29, subsection (d) of Section 30, and subsection (c) of Section 38 of this act.

Okla. Stat. tit. 12A, § 4A-501

Added by Laws 1990, SB 641, c. 110, § 32, eff. 7/1/1990.

Oklahoma Code Comment

This section sets forth the rule which governs sections permitting the amendment of the rules of Article 4A. It allows a party to a funds transfer to vary its rights and obligations by agreement unless "otherwise provided in this Article."

A funds transfer system rule may modify the obligations of members of the system. A "funds transfer system" means a communications system of an association of banks through which a payment order may be transmitted to the bank to which the order is addressed. § 4A-105(a)(5). It may only affect nonmembers to the following extent:

1. The right of a beneficiary to be notified of the receipt of an order may be modified by funds transfer system rule if the beneficiary is notified of the rule before initiation of the transfer. §4A-404(c).

2. Provisional settlement with the beneficiary may be given effect by funds transfer system rule only if the rule requires that the beneficiary and originator be given notice of the rule before the transfer is originated and the beneficiary, the beneficiary's bank and the originator's bank agree to be bound by the rule. §4A-405(d).

3. A funds transfer system may bind participants to a choice-of-law rule. It may only bind non-participants only if they know that the system may be used and they have been informed of the rule prior to the initiation of the transfer. §4A-507(a). If the receiving bank is obligated to pay interest, the rate may be set by agreement between the sender and the receiving bank.