70A-4a-501 - Variation by agreement and effect of funds transfer system rule.
70A-4a-501. Variation by agreement and effect of funds transfer system rule.
(1) Except as otherwise provided in this chapter, rights and obligations of a party to afunds transfer may be varied by agreement of the affected party.
(2) (a) "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 theassociation 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 toa funds transfer in which a Federal Reserve Bank, acting as an intermediary bank, sends apayment order to the beneficiary's bank.
(b) Except as otherwise provided in this chapter, a funds transfer system rule governingrights and obligations between participating banks using the system may be effective even if therule conflicts with this chapter and indirectly affects another party to the funds transfer who doesnot consent to the rule. A funds transfer system rule may also govern rights and obligations ofparties other than participating banks using the system to the extent stated in Subsection70A-4a-404(3), Subsection 70A-4a-405(4), and Subsection 70A-4a-507(3).
Amended by Chapter 237, 1993 General Session