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HomeCommercial CodeDiv. 11Ch. 1§ 11106 Payment Order Cutoff Times

§ 11106 Payment Order Cutoff Times

Commercial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
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§ 11106 Payment Order Cutoff Times

This law explains when a bank gets a payment order or a request to cancel/change it, and how they decide when to process it. It also says what happens if the payment date is on a weekend or holiday.

Key Takeaways

  • •Banks can set cutoff times for payments—if you send money after that time, it might not go through until the next business day.
  • •If a payment date falls on a weekend or holiday, the bank will process it on the next business day.
  • •Different cutoff times can apply to different types of payments or senders.

Example

You send money to a friend on Friday at 6 PM, but the bank's cutoff time is 5 PM.

The bank will treat your payment like it was sent on Monday morning instead of Friday.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 11106 Payment Order Cutoff Times

(a) The time of receipt of a payment order or communication canceling or amending a payment order is determined by the rules applicable to receipt of a notice stated in Section 1202. A receiving bank may fix a cutoff time or times on a funds-transfer business day for the receipt and processing of payment orders and communications canceling or amending payment orders. Different cutoff times may apply to payment orders, cancellations, or amendments, or to different categories of payment orders, cancellations, or amendments. A cutoff time may apply to senders generally or different cutoff times may apply to different senders or categories of payment orders. If a payment order or communication canceling or amending a payment order is received after the close of a funds-transfer business day or after the appropriate cutoff time on a funds-transfer business day, the receiving bank may treat the payment order or communication as received at the opening of the next funds-transfer business day. (b) If this division refers to an execution date or payment date or states a day on which a receiving bank is required to take action, and the date or day does not fall on a funds-transfer business day, the next day that is a funds-transfer business day is treated as the date or day stated, unless the contrary is stated in this division. (Amended by Stats. 2006, Ch. 254, Sec. 74. Effective January 1, 2007.)

Last verified: January 10, 2026

Key Terms

payment ordercutoff timefunds-transfer business dayreceiving bank

Related Statutes

  • § 11103 Payment Order Definitions
  • § 11201 Payment Order Security Procedures
  • § 11203 Unauthorized Payment Order Limits
  • § 11210 Payment Order Rejection
  • § 11211 Payment Order Cancellation

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Commercial Code. Section 11106.
View Official Source