{"data":{"id":"us-ky/krs-355.4a-209","jurisdiction":"us-ky","citation":"KRS 355.4A-209","heading":"Acceptance of payment order.","body":"(1) Subject to subsection (4), a receiving bank other than the beneficiary's bank accepts\na payment order when it executes the order.\n(2) Subject to subsections (3) and (4), a beneficiary's bank accepts a payment order at\nthe earliest of the following times:\n(a) When the bank:\n1. Pays the beneficiary as stated in KRS 355.4A-405(1) or (2); or\n2. Notifies the beneficiary of receipt of the order or that the account of the\nbeneficiary has been credited with respect to the order unless the notice\nindicates that the bank is rejecting the order or that funds with respect to\nthe order may not be withdrawn or used until receipt of payment from\nthe sender of the order.\n(b) When the bank receives payment of the entire amount of the sender's order\npursuant to KRS 355.4A-403(1)(a) or (b); or\n(c) The opening of the next funds -transfer business day of the bank following the\npayment date of the order if, at that time, the amount of the sender's order is\nfully covered by a withdrawable credit balance in an authorized account of the\nsender or the bank has otherwise received full payment from the sender,\nunless the order was rejected before that time or is rejected within;\n1. One hour after that time; or\n2. One hour after the opening of the next business day of the sender\nfollowing the payment date if that time is later. If notice of rejection is\nreceived by the sender after the payment date and the authorized account\nof the sender does not bear interest, the bank is obliged to pay interest to\nthe sender on the amount of the order fo r the number of days elapsing\nafter the payment date to the day the sender receives notice or learns that\nthe order was not accepted, counting that day as an elapsed day. If the\nwithdrawable credit balance during that period falls below the amount of\nthe order, the amount of interest payable is reduced accordingly.\n(3) Acceptance of a payment order cannot occur before the order is received by the\nreceiving bank. Acceptance does not occur under subsection (2)(b) or (2)(c) if the\nbeneficiary of the payment order does not have an account with the receiving bank,\nthe account has been closed, or the receiving bank is not permitted by law to receive\ncredits for the beneficiary's account.\n(4) A payment order issued to the originator's bank cannot be accepted until the\npayment date if the bank is the beneficiary's bank, or the execution date if the bank\nis not the beneficiary's bank. If the originator's bank executes the originator's\npayment order before the execution date or pays the beneficiary of the originator's\npayment order before the payment date and the payment order is subsequently\ncanceled pursuant to KRS 355.4A -211(2), the bank may recover from the\nbeneficiary any payment received to the extent allowed by the law governing\nmistake and restitution.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33571","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:45Z","sha256":"02376b985983336a5e16590a9ec796af2a2c38ddd29fdc59ec27ec70de686317","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.4a-208","next":"us-ky/krs-355.4a-210"},"notice":"GroundRules: Original legal text. Not legal advice."}