{"data":{"id":"us-ky/krs-355.4a-506","jurisdiction":"us-ky","citation":"KRS 355.4A-506","heading":"Rate of interest.","body":"(1) If, under this article, a receiving bank is obliged to pay interest with respect to a\npayment order issued to the bank, the amount payable may be determined:\n(a) By agreement of the sender and receiving bank; or\n(b) By a funds-transfer system rule if the p ayment order is transmitted through a\nfunds-transfer system.\n(2) If the amount of interest is not determined by an agreement or rule as stated in\nsubsection (1), the amount is calculated by multiplying the applicable Federal Funds\nrate by the amount on which interest is payable, and then multiplying the product by\nthe number of days for which interest is payable. The applicable Federal Funds rate\nis the average of the Federal Funds rates published by the Federal Reserve Bank of\nNew York for each of the days  for which interest is payable divided by three\nhundred sixty (360). The Federal Funds rate for any day on which a published rate\nis not available is the same as the published rate for the next preceding day for\nwhich there is a published rate. If a receiv ing bank that accepted a payment order is\nrequired to refund payment to the sender of the order because the funds transfer was\nnot completed, but the failure to complete was not due to any fault by the bank, the\ninterest payable is reduced by a percentage equal to the reserve requirement on\ndeposits of the receiving bank.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33591","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:45Z","sha256":"c9aee329beaaabc37343afb7465486b833339c26dccd3d9fe757915806cff90d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.4a-505","next":"us-ky/krs-355.4a-507"},"notice":"GroundRules: Original legal text. Not legal advice."}