2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 4A2 - Issue and Acceptance of Payment Order
Section 4A210 - Rejection of payment order

     § 4A210.  Rejection of payment order.
        (a)  Manner of rejection.--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, any means complying with the agreement is
     reasonable and any means not complying is not reasonable unless
     no significant delay in receipt of the notice resulted from the
     use of the noncomplying means.
        (b)  When sender learns after execution date that sender's
     order has not been executed.--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
     canceled pursuant to section 4A211(d) (relating to cancellation
     and amendment of payment order) 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.
        (c)  When receiving bank suspends payments.--If a receiving
     bank suspends payments, all unaccepted payment orders issued to
     it are deemed rejected at the time the bank suspends payments.
        (d)  Acceptance and rejection; mutually exclusive.--
     Acceptance of a payment order precludes a later rejection of the
     order. Rejection of a payment order precludes a later acceptance
     of the order.