N.Y. Uniform Commercial Code Law § 4-a-501: Variation by Agreement and Effect of Funds-Transfer System Rule

Section 4-A-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 (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 (3) of Section 4-A-404, subsection

(4) of Section 4-A-405, and subsection (3) of Section 4-A-507.