Kentucky Statutes 355.4A-501 – Variation by agreement and effect of funds-transfer system rule
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(1) Except as otherwise provided in this article, the rights and obligations of a party to a funds transfer may be varied by agreement of the affected party.
(2) “Funds-transfer system rule” means a rule of an association of banks:
(a) Governing transmission of payment orders by means of a funds-transfer system of the association or rights and obligations with respect to those orders; or
(b) To the extent the rule governs rights and obligations between banks that are parties to a funds transfer in which a Federal Reserve Bank, acting as an intermediary bank, sends a payment order to the beneficiary‘s bank. Except as otherwise provided in this article, a funds-transfer system rule governing rights and obligations between participating banks using the system may be effective even if the rule conflicts with this article and indirectly affects another party to the funds transfer who does not consent to the rule. A funds- transfer system rule may also govern rights and obligations of parties other than participating banks using the system to the extent stated in KRS § 355.4A-
404(3), 355.4A-405(4), and 355.4A-507(3).
Effective: July 14, 1992
History: Created 1992 Ky. Acts ch. 116, sec. 55, effective July 14, 1992.
(2) “Funds-transfer system rule” means a rule of an association of banks:
Terms Used In Kentucky Statutes 355.4A-501
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Federal: refers to the United States. See Kentucky Statutes 446.010
(a) Governing transmission of payment orders by means of a funds-transfer system of the association or rights and obligations with respect to those orders; or
(b) To the extent the rule governs rights and obligations between banks that are parties to a funds transfer in which a Federal Reserve Bank, acting as an intermediary bank, sends a payment order to the beneficiary‘s bank. Except as otherwise provided in this article, a funds-transfer system rule governing rights and obligations between participating banks using the system may be effective even if the rule conflicts with this article and indirectly affects another party to the funds transfer who does not consent to the rule. A funds- transfer system rule may also govern rights and obligations of parties other than participating banks using the system to the extent stated in KRS § 355.4A-
404(3), 355.4A-405(4), and 355.4A-507(3).
Effective: July 14, 1992
History: Created 1992 Ky. Acts ch. 116, sec. 55, effective July 14, 1992.