{"data":{"id":"us-ky/krs-355.4a-210","jurisdiction":"us-ky","citation":"KRS 355.4A-210","heading":"Rejection of payment order.","body":"(1) (a) A payment order is rejected by the receiving bank by a notice of rejection\ntransmitted to the sender orally or in a record.\n(b) A notice of rejection need not use any particular words and is sufficient if it\nindicates that the receiving bank is rejecting t he order or will not execute or\npay the order.\n(c) Rejection is effective when the notice is given if transmission is by a means\nthat is reasonable in the circumstances.\n(d) If notice of rejection is given by a means that is not reasonable, rejection is\neffective when the notice is received.\n(e) If an agreement of the sender and receiving bank establishes the means to be\nused to reject a payment order:\n1. Any means complying with the agreement is reasonable; and\n2. Any means not complying is not reasonable unless no significant delay\nin receipt of the notice resulted from the use of the noncomplying\nmeans.\n(2) (a) This subsection applies if a receiving bank other than the beneficiary's bank\nfails to execute a payment order despite the existence on the execut ion date of\na withdrawable credit balance in an authorized account of the sender\nsufficient to cover the order.\n(b) If the sender does not receive notice of rejection of the order on the execution\ndate and the authorized account of the sender does not bear interest, the bank\nis obliged to pay interest to the sender on the amount of the order for the\nnumber of days elaps ing after the execution date to the earlier of the day the\norder is canceled pursuant to KRS 355.4A -211(4) or the day the sender\nreceives notice or learns that the order was not executed, counting the final\nday of the period as an elapsed day. If the withd rawable credit balance during\nthat period falls below the amount of the order, the amount of interest is\nreduced accordingly.\n(3) If a receiving bank suspends payments, all unaccepted payment orders issued to it\nare deemed rejected at the time the bank suspends payments.\n(4) (a) Acceptance of a payment order precludes a later rejection of the order.\n(b) Rejection of a payment order precludes a later acceptance of the order.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55656","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:45Z","sha256":"e29a8d4e61a1c2576efbd6d31bc67562aa3ccfec88d7ec10b7aff64b4c075596","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.4a-209","next":"us-ky/krs-355.4a-211"},"notice":"GroundRules: Original legal text. Not legal advice."}