Which obligations under UCC 4A are superseded by NACHA Operating Rules?

Which obligations under UCC 4A are superseded by NACHA Operating Rules?

• A. Timely transmittal of Entry
• B. Choice of Law
• C. Notice to Receiver
• D. Selection of ACH Operator

Answer: (C)

The correct answer focuses on the obligations under UCC 4A that do not align with the regulations set forth by NACHA Operating Rules. When considering what UCC 4A provisions are superseded by NACHA, notice to the receiver is a key point of contention. The NACHA Operating Rules establish specific requirements for notifying the receiver, which may supersede the more generalized provisions of UCC 4A regarding notice. Under UCC 4A, the emphasis is on uniformity and clarity in the rights and responsibilities of parties involved in electronic fund transfers, whereas NACHA has laid out detailed operational guidelines that dictate the exact procedures and notices required in the context of ACH transactions. Thus, while UCC 4A provides a framework for electronic payments, NACHA’s tailored rules are designed to address the specific mechanics of ACH operations, including how notifications to the receiver should be handled. This results in the provisions under UCC 4A regarding "notice to the receiver" being superseded to ensure conformity with the more specific NACHA guidelines. In contrast, items such as timely transmittal of entry, choice of law, and selection of ACH operator are not typically overridden by NACHA. Instead, these aspects may remain intact under U

The correct answer focuses on the obligations under UCC 4A that do not align with the regulations set forth by NACHA Operating Rules. When considering what UCC 4A provisions are superseded by NACHA, notice to the receiver is a key point of contention. The NACHA Operating Rules establish specific requirements for notifying the receiver, which may supersede the more generalized provisions of UCC 4A regarding notice.

Under UCC 4A, the emphasis is on uniformity and clarity in the rights and responsibilities of parties involved in electronic fund transfers, whereas NACHA has laid out detailed operational guidelines that dictate the exact procedures and notices required in the context of ACH transactions. Thus, while UCC 4A provides a framework for electronic payments, NACHA’s tailored rules are designed to address the specific mechanics of ACH operations, including how notifications to the receiver should be handled. This results in the provisions under UCC 4A regarding "notice to the receiver" being superseded to ensure conformity with the more specific NACHA guidelines.

In contrast, items such as timely transmittal of entry, choice of law, and selection of ACH operator are not typically overridden by NACHA. Instead, these aspects may remain intact under U