Also known as: payment dates · due date
Written by attorneys · grounded in primary & secondary sources — see below
The day on which the amount of a payment order becomes payable to the beneficiary by the beneficiary's bank. The payment date may be set by the sender's instruction but cannot precede the day the order reaches the beneficiary's bank and defaults to the receipt day unless the sender specifies otherwise.
Platinum Partners holds a promissory note from Progressive Healthcare with principal due on March 15 and interest due monthly. Progressive pays the March interest ten days late but tenders the full principal on the due date. Because the principal payment occurs on time, the note does not become overdue under the rule that default in interest alone does not trigger overdue status when principal remains unaccelerated.
Phoenix Technologies agrees to supply components to Prosperity Investments with payment due upon delivery by April 10. Prosperity withholds payment after discovering a quality issue and attempts to cancel the order on April 12. The jury finds that missing the April 10 payment date does not amount to a repudiation by Prosperity because the parties treated the orders as a single contract and the seller had not requested assurance before the due date passed.
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Acceptance by inaction occurs at the opening of the next funds-transfer business day after the payment date if the sender's account holds sufficient withdrawable funds at that moment. The rule applies only when the bank has not already accepted or rejected the order and gives the sender one hour after that opening to receive notice of rejection.
The beneficiary's bank must refund the amount paid to the extent the sender was not obliged to pay. Interest runs from the date of payment until refund, reduced if the account balance falls below the order amount during the period.
No. The payment date cannot precede the day the order reaches the beneficiary's bank even if the sender attempts to instruct an earlier date.
…to Spedley indicating it would not renew the agreement and demanding payment of the outstanding debt on April 10, 1989, the due date. Spedley had a relationship with Security Pacific, whereby Security Pacific effected wire transfers on Spedley’s behalf. Spedley intended to make payment on its debt to Banque Worms by…