(a) The time of receipt of a payment order or communication canceling or amending a payment order is determined by the rules applicable to receipt of a notice stated in Section 55-1-202 NMSA 1978. A receiving bank may fix a cut-off time or times on a funds-transfer business day for the receipt and processing of payment orders and communications canceling or amending payment orders. Different cut-off times may apply to payment orders, cancellations or amendments, or to different categories of payment orders, cancellations or amendments. A cut-off time may apply to senders generally or different cut-off times may apply to different senders or categories of payment orders. If a payment order or communication canceling or amending a payment order is received after the close of a funds-transfer business day or after the appropriate cut-off time on a funds-transfer business day, the receiving bank may treat the payment order or communication as received at the opening of the next funds-transfer business day.

(b) If this article refers to an execution date or payment date or states a day on which a receiving bank is required to take action, and the date or day does not fall on a funds-transfer business day, the next day that is a funds-transfer business day is treated as the date or day stated, unless the contrary is stated in this article.

History: 1978 Comp., § 55-4A-106, enacted by Laws 1992, ch. 114, § 202; 2005, ch. 144, § 49; 2015, ch. 54, § 3.

OFFICIAL COMMENTS

UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.

The time that a payment order is received by a receiving bank usually defines the payment date or the execution date of a payment order. Section 4A-401 [55-4A-401 NMSA 1978] and Section 4A-301 [55-4A-301 NMSA 1978]. The time of receipt of a payment order, or communication cancelling or amending a payment order is defined in Subsection (a) by reference to the rules stated in Section 1-202 [55-1-202 NMSA 1978]. Thus, time of receipt is determined by the same rules that determine when a notice is received. Time of receipt, however, may be altered by a cut-off time.

The 2015 amendment, effective July 1, 2015, amended the Uniform Commercial Code, as enacted by New Mexico, to make it uniform; and in Subsection (a), after "amendments", added "or to different categories of payment orders, cancellations or amendments".

The 2005 amendment, effective January 1, 2006, changed the statutory reference in Subsection (a) from Section 55-1-201(27) NMSA 1978 to Section 55-1-202 NMSA 1978.