The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 9A V.S.A. § 4A-209)
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§ 4A—209. Acceptance of payment order
(a) Subject to subsection (d) of this section, a receiving bank other than the beneficiary’s
bank accepts a payment order when it executes the order.
(b) Subject to subsections (c) and (d) of this section, a beneficiary’s bank accepts a
payment order at the earliest of the following times:
(1) When the bank (i) pays the beneficiary as stated in subsection 4A—405(a) or 4A—405(b) of this title, or (ii) notifies the beneficiary of receipt of the order or that the account of
the beneficiary has been credited with respect to the order unless the notice indicates
that the bank is rejecting the order or that funds with respect to the order may not
be withdrawn or used until receipt of payment from the sender of the order.
(2) When the bank receives payment of the entire amount of the sender’s order pursuant
to subdivision 4A—403(a)(1) or 4A—403(a)(2) of this title.
(3) The opening of the next funds-transfer business day of the bank following the payment
date of the order if, at that time, the amount of the sender’s order is fully covered
by a withdrawable credit balance in an authorized account of the sender or the bank
has otherwise received full payment from the sender, unless the order was rejected
before that time or is rejected within (i) one hour after that time, or (ii) one hour
after the opening of the next business day of the sender following the payment date
if that time is later. If notice of rejection is received by the sender after the
payment date and the authorized account of the sender does not bear interest, the
bank is obliged to pay interest to the sender on the amount of the order for the number
of days elapsing after the payment date to the day the sender receives notice or learns
that the order was not accepted, counting that day as an elapsed day. If the withdrawable
credit balance during that period falls below the amount of the order, the amount
of interest payable is reduced accordingly.
(c) Acceptance of a payment order cannot occur before the order is received by the receiving
bank. Acceptance does not occur under subdivision (b)(2) or (b)(3) of this section
if the beneficiary of the payment order does not have an account with the receiving
bank, the account has been closed, or the receiving bank is not permitted by law to
receive credits for the beneficiary’s account.
(d) A payment order issued to the originator’s bank cannot be accepted until the payment
date if the bank is the beneficiary’s bank, or the execution date if the bank is not
the beneficiary’s bank. If the originator’s bank executes the originator’s payment
order before the execution date or pays the beneficiary of the originator’s payment
order before the payment date and the payment order is subsequently cancelled pursuant
to subsection 4A—211(b) of this title, the bank may recover from the beneficiary any payment received to the extent allowed
by the law governing mistake and restitution. (Added 1993, No. 158 (Adj. Sess.), § 14, eff. Jan. 1, 1995.)