{"data":{"id":"us-ky/krs-355.4a-403","jurisdiction":"us-ky","citation":"KRS 355.4A-403","heading":"Payment by sender to receiving bank.","body":"(1) Payment of the sender's obligation under KRS 355.4A -402 to pay the receiving\nbank occurs as follows:\n(a) If the sender is a bank, payment occurs when the receiving bank receives final\nsettlement of the obligation through a Federal Reserve Bank or through a\nfunds-transfer system.\n(b) If the sender is a bank and the sender:\n1. Credited an account of the receiving bank with the sender; or\n2. Caused an account of the receiving bank in another bank to be credited,\npayment occurs when the credit is withdrawn or, if not withdrawn, at\nmidnight of the day on which the credit is withdrawable and the\nreceiving bank learns of that fact.\n(c) If the receiving bank debits an account of the sender with the receiving bank,\npayment occurs when the debit is made to the extent the debit is covered by a\nwithdrawable credit balance in the account.\n(2) If the sender and receiving bank are members of a funds -transfer system that nets\nobligations multilaterally among participants, the receiving bank receives final\nsettlement when set tlement is complete in accordance with the rules of the system.\nThe obligation of the sender to pay the amount of a payment order transmitted\nthrough the funds -transfer system may be satisfied, to the extent permitted by the\nrules of the system, by setting  off and applying against the sender's obligation the\nright of the sender to receive payment from the receiving bank of the amount of any\nother payment order transmitted to the sender by the receiving bank through the\nfunds-transfer system. The aggregate balance of obligations owed by each sender to\neach receiving bank in the funds -transfer system may be satisfied, to the extent\npermitted by the rules of the system, by setting off and applying against that balance\nthe aggregate balance of obligations owed t o the sender by other members of the\nsystem. The aggregate balance is determined after the right of setoff stated in the\nsecond sentence of this subsection has been exercised.\n(3) If two (2) banks transmit payment orders to each other under an agreement th at\nsettlement of the obligations of each bank to the other under KRS 355.4A -402 will\nbe made at the end of the day or other period, the total amount owed with respect to\nall orders transmitted by one (1) bank shall be set off against the total amount owed\nwith respect to all orders transmitted by the other bank. To the extent of the setoff,\neach bank has made payment to the other.\n(4) In a case not covered by subsection (1), the time when payment of the sender's\nobligation under KRS 355.4A -402(2) or (3) occ urs is governed by applicable\nprinciples of law that determine when an obligation is satisfied.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33582","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:45Z","sha256":"e50339d13ee8a5dd5b9520b4782c0c3e1577f831aeb2dd43085f3ea27104eb98","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.4a-402","next":"us-ky/krs-355.4a-404"},"notice":"GroundRules: Original legal text. Not legal advice."}