This law explains what a 'security procedure' means when you're dealing with banks and money transfers. It's a method agreed upon by a customer and a bank to make sure that a payment order or any changes to it are actually coming from the customer. It's also meant to catch any mistakes in these orders. Security procedures can involve things like special codes, algorithms, biometric data, or other methods like callbacks. Just checking a signature or confirming an email or phone number by itself doesn't count as a full security procedure.

This law explains how payment orders given to banks are treated as authorized. If the order is made by the person identified as the sender or that person has an arrangement with the bank, it's considered authorized. If there's a security system to verify these orders, the order still stands even if the sender didn't authorize it, as long as the procedure is reasonable, and the bank follows the rules. The ideas of what makes a security system "reasonable" depend on what the customer and bank agree upon, the customer's circumstances, and standard practices. The law also mentions that the sender in this context is the customer who initiates the payment order, and these rules apply to any changes or cancellations as well. Generally, this section can’t be changed through agreements except in certain circumstances.

This section talks about what happens if a payment order wasn't officially authorized by a customer but still counts as their order due to certain circumstances. Firstly, it says that a bank can, through a written agreement, limit how much they can enforce or keep payment. Secondly, the bank can't enforce the payment if the customer proves that the order wasn't made by someone they trusted to handle such orders, or by anyone who got unauthorized access to their information. This also covers any changes made to payment orders.

If a bank processes a payment order from a customer's account without proper authorization or if it's not enforceable, the bank must pay back the customer and add interest from the date the bank received the payment until the refund date. However, the customer won't get interest if they took too long (more than 90 days) to inform the bank that the order wasn't authorized after being notified. The agreement can set the 'reasonable time' for the customer to act, but the bank’s obligation to refund cannot be otherwise altered by any agreement.

If you send a payment that goes wrong because of a mistake, this law explains what happens. If you used a security check and the bank didn’t catch the mistake, you might not have to pay. If the money ended up with the wrong person, the bank can try to get it back from them. If too much money was sent, the bank can reclaim the extra. You must check for these mistakes quickly and let the bank know within 90 days, or you could owe them for any losses they claim. The rules also apply if you change payment details.

This law section says that if a payment is sent through a system to a bank, that system acts as the sender's representative. If the details of the payment order change between when it's sent to the system and when it gets to the bank, the version sent through the system is considered correct. This rule doesn't cover Federal Reserve Bank systems. Additionally, the same rules apply to changes or cancellations of payment orders.

This section deals with payment orders where a bank receives instructions about who to pay. If the details (like a name or account number) don't match a real person or account, no one is considered the beneficiary, and the bank can't accept the order. If there is a mismatch between the name and account number, the bank can use the account number to determine who to pay, unless they know there's a mistake. If the listed name and account number identify different people, only the person entitled to receive the payment is recognized. If a bank pays the wrong person, depending on the situation, the originator of the transfer might not have to pay. In cases of error, the money might be recoverable under laws about mistakes and restitution.

This law explains what happens when a payment order to transfer money uses a number to identify the bank in charge of passing it along or the final bank of the money’s destination. If only an identifying number, like an account or routing number, is used, the bank that receives the order can rely on it without checking if the number indeed corresponds to a bank. If something goes wrong because of this reliance, the person who sent the payment, not the bank getting the order, must cover any losses. When both a name and a number are included and they match different banks, if the sender is another bank, the receiving bank can still use the number alone as long as they aren’t aware of the mismatch. If the sender isn’t a bank, but knew the receiving bank could rely solely on the number, the same rules apply as if they were a bank. However, if the receiving bank knows the name and number point to different places, using either one wrongfully can breach obligations.

This law explains when a bank, either the receiver or the beneficiary's bank, accepts a payment order. Basically, a receiving bank (other than the beneficiary's bank) accepts an order when it executes it. For a beneficiary's bank, acceptance happens in a few different ways: when they notify the beneficiary about the order or credit their account, when they receive full payment of the order, or on the next business day if there's enough money in the sender's account and no rejection of the order occurs. Also, a bank can’t accept an order before it's received, and certain conditions must be met for acceptance, especially if the beneficiary doesn't have a valid account. Lastly, if a payment order is executed or paid too early and later canceled, the bank may reclaim the payment, given certain conditions.

This section talks about how a bank can reject a payment order. A bank can tell the sender it's rejecting an order either by talking to them or through a written record. The notice doesn't have to be fancy, just clear enough to show it's a rejection. If there's a specific agreement on how to notify, that should be followed. Else, a reasonable method should be used for effective rejection. If a bank fails to execute the order while having enough money in the sender's account, it must pay interest on that amount if the account doesn't bear interest. If the bank goes bankrupt, then all pending orders are automatically rejected. Once a bank accepts an order, it can't reject it later, and if it rejects, it can't accept later.

This law describes the rules for canceling or changing a payment order sent to a bank. If there's a security procedure between the sender and bank, any cancellation or change must be verified according to that procedure, or the bank must agree to the change. The communication must also be received in a timely manner so the bank can act on it. Even if the bank has accepted the order, changes aren't effective unless the bank agrees, or specific situations apply, like mistakes or unauthorized transactions. An unaccepted order is automatically canceled after five business days. Canceling an accepted order nullifies any obligations tied to it. If a bank agrees to cancel or amend after accepting an order, the sender may be liable for costs. Death or incapacity of the sender doesn't cancel an order unless the bank is aware and can respond before acceptance. Fund-transfer system rules that contradict these rules are not effective.

This law states that if a bank has agreed to accept a payment order but fails to do so, it can be held liable according to that agreement or the rules in this section. However, the bank doesn't have any obligation to take action on a payment order unless it accepts the order or has explicitly agreed to do so. When a bank accepts a payment order, the responsibilities are only what the law or agreement specifies, and the bank isn't acting on behalf of the person sending or receiving the money.