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This entry was published on 2014-09-22
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SECTION 4-A-501
Variation by Agreement and Effect of Funds-Transfer System Rule
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 4-A, PART 5
Section 4-A-501. Variation by Agreement and Effect of Funds-Transfer

System Rule.

(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 (i) 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 (ii) 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 subsection (3) of Section 4-A-404, subsection
(4) of Section 4-A-405, and subsection (3) of Section 4-A-507.