{"data":{"id":"us-ky/krs-355.4a-302","jurisdiction":"us-ky","citation":"KRS 355.4A-302","heading":"Obligation of receiving bank in execution of payment order.","body":"(1) Except as provided in subsections (2) through (4), if the receiving bank accepts a\npayment order pursuant to KRS 355.4A -209(1), the bank has the following\nobligations in executing the order:\n(a) The receiving bank is obliged to issue, on the execution date , a payment order\ncomplying with the sender's order and to follow the sender's instructions\nconcerning:\n1. Any intermediary bank or funds -transfer system to be used in carrying\nout the funds transfer; or\n2. The means by which payment orders are to be trans mitted in the funds\ntransfer. If the originator's bank issues a payment order to an\nintermediary bank, the originator's bank is obliged to instruct the\nintermediary bank according to the instruction of the originator. An\nintermediary bank in the funds tran sfer is similarly bound by an\ninstruction given to it by the sender of the payment order it accepts;\n(b) If the sender's instruction states that the funds transfer is to be carried out\ntelephonically or by wire transfer or otherwise indicates that the funds transfer\nis to be carried out by the most expeditious means, the receiving bank is\nobliged to transmit its payment order by the most expeditious available means,\nand to instruct any intermediary bank accordingly. If a sender's instruction\nstates a paymen t date, the receiving bank is obliged to transmit its payment\norder at a time and by means reasonably necessary to allow payment to the\nbeneficiary on the payment date or as soon thereafter as is feasible.\n(2) Unless otherwise instructed, a receiving bank executing a payment order may:\n(a) Use any funds -transfer system if use of that system is reasonable in the\ncircumstances; and\n(b) Issue a payment order to the beneficiary's bank or to an intermediary bank\nthrough which a payment order conforming to the se nder's order can\nexpeditiously be issued to the beneficiary's bank if the receiving bank\nexercises ordinary care in the selection of the intermediary bank. A receiving\nbank is not required to follow an instruction of the sender designating a funds-\ntransfer system to be used in carrying out the funds transfer if the receiving\nbank, in good faith, determines that it is not feasible to follow the instruction\nor that following the instruction would unduly delay completion of the funds\ntransfer.\n(3) Unless subsection (1)(b) applies or the receiving bank is otherwise instructed, the\nbank may execute a payment order by transmitting its payment order by first class\nmail or by any means reasonable in the circumstances. If the receiving bank is\ninstructed to execute t he sender's order by transmitting its payment order by a\nparticular means, the receiving bank may issue its payment order by the means\nstated or by any means as expeditious as the means stated.\n(4) Unless instructed by the sender:\n(a) The receiving bank ma y not obtain payment of its charges for services and\nexpenses in connection with the execution of the sender's order by issuing a\npayment order in an amount equal to the amount of the sender's order less the\namount of the charges; and\n(b) May not instruct a subsequent receiving bank to obtain payment of its charges\nin the same manner.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33576","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:45Z","sha256":"73c01652e39180c86dfca637bd04c51654dd41f3f519671ed4f7f9b5d70ab20b","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.4a-301","next":"us-ky/krs-355.4a-303"},"notice":"GroundRules: Original legal text. Not legal advice."}