New Jersey § 12a:4a-210

§ 12a:4a-210.

(1) A payment order is rejected by the receiving bank by a notice of rejection transmitted

to the sender orally, electronically, or in writing. A notice of rejection need not use any particular words and is sufficient if it

indicates that the receiving bank is rejecting the order or will not execute or pay

the order. Rejection is effective when the notice is given if transmission is by a means that

is reasonable in the circumstances. If notice of rejection is given by a means that is not reasonable, rejection is

effective when the notice is received. If an agreement of the sender and receiving bank establishes the means to be used

to reject a payment order, (i) any means complying with the agreement is reasonable

and (ii) any means not complying is not reasonable unless no significant delay in

receipt of the notice resulted from the use of the noncomplying means. (2) This subsection applies if a receiving bank other than the beneficiary's bank

fails to execute a payment order despite the existence on the execution date of a

withdrawable credit balance in an authorized account of the sender sufficient to cover

the order. If the sender does not receive notice of rejection of the order on the execution

date and the authorized account of the sender does not bear interest, the bank is

obliged to pay interest to the sender on the amount of the order for the number of

days elapsing after the execution date to the earlier of the day the order is canceled

pursuant to section 12A:4A-211(4) or the day the sender receives notice or learns that the order was not executed,

counting the final day of the period as an elapsed day. If the withdrawable credit balance during that period falls below the amount of

the order, the amount of interest is reduced accordingly. (3) If a receiving bank suspends payments, all unaccepted payment orders issued to

it are deemed rejected at the time the bank suspends payments. (4) Acceptance of a payment order precludes a later rejection of the order. Rejection of a payment order precludes a later acceptance of the order.