§ 4A-104. FUNDS TRANSFER - DEFINITIONS. (2024)

FAQs

What is Article 4A of the Uniform Commercial Code funds transfers? ›

Article 4A of the UCC governs funds transfers. It establishes the rights and responsibilities of the parties to a funds transfer, including the partiesʼ payment obligations and allocation of risk of loss for unauthorized or improperly executed payment orders.

(1) “Funds transfer” means the series of transactions, beginning with the originator's payment order, made for the purpose of making payment to the beneficiary of the order.

Essentially, an electronic funds transfer is a transaction by which funds move from one institution to another or one account to another at the direction of an institution's customer and through the transmission of electronic instruction messages that cause the institutions to make the required bookkeeping entries and ...

When an account holder moves funds from one account to another, say from a checking account to a savings account with a higher interest rate, or from savings to an IRA account, a transfer has occurred.

At the state level, the Uniform Commercial Code (UCC) Articles 3 and 4 serve as the foundational laws for checks, and UCC Article 4A establishes the laws for wholesale wire transfers.

UCC4A applies to credit transfers, including those transmitted via CHIPS, Fedwire and ACH. Consumer electronic funds transfers covered by the Electronic Funds Transfer ACT (EFTA) are excluded from coverage under Article 4A.

To make a bank transfer, you'll need the: account holder's name. account sort code and account number. amount you want to pay.

EFTs include, but are not limited to: Automated teller machine (ATM) transfers. Direct deposit payment or withdrawals of funds initiated by the payer. Direct debit payments in which a business debits the consumer's bank accounts for payment for goods or services.

In civil law, the word transaction may be used to refer to an agreement (commonly written in the form of a contract) reached between two or more parties whereby they make reciprocal concessions to prevent or end a dispute that might end up in litigation.

A balance transfer allows you to move debt from one credit card to another, in your name only. This could save you money if you're paying a higher rate of interest on the credit card with the existing balance. A money transfer allows you to borrow money on your credit card and transfer it to your current account.

What is the difference between a transfer and a transaction? ›

A transfer moves funds from one account to another. This move may be within one bank, or between banks. A transaction can be other types of activities in addition to a transfer. A deposit into a savings or checking account is a transaction.

Funds are collective investments, Where yours and other investors' money is pooled together and spread across a wide range of underlying investments. The main types of investment funds are unit trusts and open-ended investment companies (OEICs), and investment trusts.

1. a. : to convey from one person, place, or situation to another : move, shift. b. : to cause to pass from one to another : transmit.

the sending of money from one bank account to another, usually electronically: Payment was in advance by bank transfer.

4 Bank Deposits: UCC Article 4 covers the liability of a bank for action or non-action with respect to an item handled by it for purposes of presentment, payment, or collection. The law of the place where the bank is located governs.

Uniform Commercial Code Article 4 governs bank deposits and collections, providing rules for check processing and automated inter-bank collections.

The Uniform Commercial Code (UCC) Section 4A-207 provides that if a payment order (including wire transfers) received by the beneficiary's bank includes the beneficiary's name and a different account number than the beneficiary's real account number, the bank is not liable for the misdirected wire unless the bank had “ ...