2010 Pennsylvania Code
Title 13 - COMMERCIAL CODE
Chapter 4A5 - Miscellaneous Provisions
4A506 - Rate of interest.

     § 4A506.  Rate of interest.
        (a)  By agreement or funds-transfer system rule.--If, under
     this division, a receiving bank is obliged to pay interest with
     respect to a payment order issued to the bank, the amount
     payable may be determined:
            (1)  by agreement of the sender and receiving bank; or
            (2)  by a funds-transfer system rule if the payment order
        is transmitted through a funds-transfer system.
        (b)  Method of calculation when not determined by agreement
     or rule.--If the amount of interest is not determined by an
     agreement or rule as stated in subsection (a), the amount is
     calculated by multiplying the applicable Federal Funds rate by
     the amount on which interest is payable and then multiplying the
     product by the number of days for which interest is payable. The
     applicable Federal Funds rate is the average of the Federal
     Funds rates published by the Federal Reserve Bank of New York
     for each of the days for which interest is payable divided by
     360. The Federal Funds rate for any day on which a published
     rate is not available is the same as the published rate for the
     next preceding day for which there is a published rate. If a
     receiving bank that accepted a payment order is required to
     refund payment to the sender of the order because the funds
     transfer was not completed, but the failure to complete was not
     due to any fault by the bank, the interest payable is reduced by
     a percentage equal to the reserve requirement on deposits of the
     receiving bank.