2006 New York Code - Rejection Of Payment Order.

 
  Section 4-A-210. Rejection of Payment Order.
    (1)  A  payment order is rejected by the receiving bank by a notice of
  rejection transmitted  to  the  sender  orally,  electronically,  or  in
  writing.  A notice of rejection need not use any particular words and is
  sufficient if it indicates that the  receiving  bank  is  rejecting  the
  order  or will not execute or pay the order. Rejection is effective when
  the notice is given if transmission is by a means that is reasonable  in
  the  circumstances.  If  notice of rejection is given by a means that is
  not reasonable, rejection is effective when the notice is  received.  If
  an  agreement  of the sender and receiving bank establishes the means to
  be used to reject a payment order, (i)  any  means  complying  with  the
  agreement  is  reasonable  and  (ii)  any  means  not  complying  is not
  reasonable unless no significant delay in receipt of the notice resulted
  from the use of the noncomplying means.
    (2) This subsection  applies  if  a  receiving  bank  other  than  the
  beneficiary's  bank  fails  to  execute  a  payment  order  despite  the
  existence on the execution date of a withdrawable credit balance  in  an
  authorized  account  of the sender sufficient to cover the order. If the
  sender does not  receive  notice  of  rejection  of  the  order  on  the
  execution  date  and  the authorized account of the sender does not bear
  interest, the bank is obliged to pay  interest  to  the  sender  on  the
  amount  of the order for the number of days elapsing after the execution
  date to the earlier of the  day  the  order  is  cancelled  pursuant  to
  subsection  (4) of Section 4-A-211 or the day the sender receives notice
  or learns that the order was not executed, counting the final day of the
  period as an elapsed day. If the withdrawable credit balance during that
  period falls below the amount of the order, the amount  of  interest  is
  reduced accordingly.
    (3)  If  a  receiving  bank  suspends payments, all unaccepted payment
  orders issued to it are deemed rejected at the time  the  bank  suspends
  payments.
    (4)  Acceptance  of a payment order precludes a later rejection of the
  order. Rejection of a payment order precludes a later acceptance of  the
  order.