KRS 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 banks using the system to the extent stated in KRS 355.4A -

404(3), 355.4A-405(4), and 355.4A-507(3).