Tex. Bus. & Com. Code Section 4A.506
Rate of Interest

(a)

If, under this chapter, a receiving bank is obliged to pay interest with respect to a payment order issued to the bank, the amount payable may be determined (i) by agreement of the sender and receiving bank, or (ii) by funds transfer system rule if the payment order is transmitted through a funds transfer system.

(b)

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.
Added by Acts 1993, 73rd Leg., ch. 570, Sec. 7, eff. Sept. 1, 1993.

Source: Section 4A.506 — Rate of Interest, https://statutes.­capitol.­texas.­gov/Docs/BC/htm/BC.­4A.­htm#4A.­506 (accessed Jun. 5, 2024).

4A.101
Short Title 4A.102
Subject Matter 4A.103
Payment Order--definitions 4A.104
Funds Transfer--definitions 4A.105
Other Definitions 4A.106
Time Payment Order Is Received 4A.107
Federal Reserve Regulations and Operating Circulars 4A.108
Relationship to Electronic Fund Transfer Act 4A.201
Security Procedure 4A.202
Authorized and Verified Payment Orders 4A.203
Unenforceability of Certain Verified Payment Orders 4A.204
Refund of Payment and Duty of Customer to Report with Respect to Unauthorized Payment Order 4A.205
Erroneous Payment Orders 4A.206
Transmission of Payment Order Through Funds Transfer or Other Communication System 4A.207
Misdescription of Beneficiary 4A.208
Misdescription of Intermediary Bank or Beneficiary’s Bank 4A.209
Acceptance of Payment Order 4A.210
Rejection of Payment Order 4A.211
Cancellation and Amendment of Payment Order 4A.212
Liability and Duty of Receiving Bank Regarding Unaccepted Payment Order 4A.301
Execution and Execution Date 4A.302
Obligations of Receiving Bank in Execution of Payment Order 4A.303
Erroneous Execution of Payment Order 4A.304
Duty of Sender to Report Erroneously Executed Payment Order 4A.305
Liability for Late or Improper Execution or Failure to Execute Payment Order 4A.401
Payment Date 4A.402
Obligation of Sender to Pay Receiving Bank 4A.403
Payment by Sender to Receiving Bank 4A.404
Obligation of Beneficiary’s Bank to Pay and Give Notice to Beneficiary 4A.405
Payment by Beneficiary’s Bank to Beneficiary 4A.406
Payment by Originator to Beneficiary 4A.501
Variation by Agreement and Effect of Funds Transfer System Rule 4A.502
Creditor Process Served on Receiving Bank 4A.503
Injunction or Restraining Order with Respect to Funds Transfer 4A.504
Order in Which Items and Payment Orders May Be Charged to Account 4A.505
Preclusion of Objection to Debit of Customer’s Account 4A.506
Rate of Interest 4A.507
Choice of Law
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Accessed:
Jun. 5, 2024

§ 4A.506’s source at texas​.gov