KRS 355.4A-212: 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 article, but does not otherwise have any duty to accep t a payment

order or, before acceptance, to take any action, or refrain from taking action, with respect

to the order except as provided in this article or by express agreement. Liability based on

acceptance arises only when acceptance occurs as stated in KRS 355.4A-209, and liability

is limited to that provided in this article. A receiving bank is not the agent of the sender or

beneficiary of the payment order it accepts, or of any other party to the funds transfer, and

the bank owes no duty to any party t o the funds transfer except as provided in this article

or by express agreement.