California Commercial Code

§ 11403

COM § 11403Div. 11 · Ch. 4

Statute text

(a)Payment of the sender’s obligation under Section 11402 to pay the receiving bank occurs as follows:

(1)If the sender is a bank, payment occurs when the receiving bank receives final settlement of the obligation through a Federal Reserve Bank or through a funds-transfer system.

(2)If the sender is a bank and the sender (i) credited an account of the receiving bank with the sender, or (ii) caused an account of the receiving bank in another bank to be credited, payment occurs when the credit is withdrawn or, if not withdrawn, at midnight of the day on which the credit is withdrawable and the receiving bank learns of that fact.

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Legislative history

Added by Stats. 1990, Ch. 125, Sec. 2.