Printable Format84-4a-501. Variation by agreement and effect of funds-transfer system rule. (a) Except as otherwise provided in this article, rights and obligations of a party to a funds transfer may be varied by agreement of the affected party.
(b) "Funds-transfer system rule" means a rule of an association of banks: (i) governing transmission of payment orders by means of a funds-transfer system of the association or rights and obligations with respect to those orders; or (ii) to the extent the rule governs rights and obligations between banks that are parties to a funds transfer in which a federal reserve bank, acting as an intermediary bank, sends a payment order to the beneficiary's bank. Except as otherwise provided in this article, a funds-transfer system rule governing rights and obligations between participating banks using the system may be effective even if the rule conflicts with this article and indirectly affects another party to the funds transfer who does not consent to the rule. A funds-transfer system rule may also govern rights and obligations of parties other than participating banks using the system to the extent stated in subsection (c) of K.S.A. 84-4a-404, subsection (d) of K.S.A. 84-4a-405, and subsection (c) of K.S.A. 84-4a-507.
History: L. 1990, ch. 367, § 32; L. 1991, ch. 294, § 27; July 1.
KANSAS COMMENT, 1996
This section is identical to the 1995 Official Text.
Although subsection (a) allows the parties to vary the agreement except where specific sections of article 4a prohibit it, subsection (b) will override this by making some funds-transfer systems rules generally binding on parties other than the banks that enter into these agreements. In addition to the enumerated cross references at the end of 84-4a-501, funds-transfer systems rules can bind all persons using the system. To know all the rules that affect a bank or a client under article 4a, it will be necessary to examine the terms of this article, the terms of any agreements between the banks and the parties, and the terms of bank systems among themselves that may bind nonjoining parties.