Massachusetts General Laws ch. 106 sec. 4A-103 – Payment Order — Definitions
Section 4A–103. (a) In this Article, unless the context otherwise requires, the following words and terms shall have the following meanings:
Terms Used In Massachusetts General Laws ch. 106 sec. 4A-103
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
(1) ”Payment order”, an instruction of a sender to a receiving bank, transmitted orally, electronically, or in writing, to pay, or to cause another bank to pay, a fixed or determinable amount of money to a beneficiary if:
(i) such instruction does not state a condition to payment to the beneficiary other than time of payment;
(ii) such receiving bank is to be reimbursed by debiting an account of, or otherwise receiving payment from, the sender; and
(iii) such instruction is transmitted by the sender directly to the receiving bank or to an agent, funds transfer system, or communication system for transmittal to the receiving bank.
(2) ”Beneficiary”, the person to be paid by the beneficiary’s bank.
(3) ”Beneficiary’s bank”, the bank identified in a payment order in which an account of the beneficiary is to be credited pursuant to the order or which otherwise is to make payment to the beneficiary if the order does not provide for payment to an account.
(4) ”Receiving bank”, the bank to which the sender’s instruction is addressed.
(5) ”Sender”, the person giving the instruction to the receiving bank.
(b) If an instruction complying with paragraph (1) of subsection (a) is to make more than one payment to a beneficiary, the instruction is a separate payment order with respect to each such payment.
(c) A payment order is issued when it is sent to the receiving bank.