Electronic Funds Transfer To Pay The Civil Liability Of Defects Explore

In the past several years, large-value electronic funds transfer system has been widely used in the industry of banking and finance, which contributes a lot to the modernization of payment instruments. However the deficiency of the related laws and regulations has become a potential threat to the development of the system. Especially when the payment failed for any reason, how to define the liability of each party would be the key point for the settlement of the disputes. Unfortunately, till today, seldom countries have constituted fully-covered laws and regulations governing the large-value electronic funds transfer except for the United States and some few developed countries. The United Nations Commission on International Trade Law has shown great concern on this issue and successively drafted UNCITRAL Legal Guide on Electronic Funds Transfers and UNCITRAL Model Law on International Credit Transfers in order to help all the countries to constitute their own laws and regulations.In our country, China National Automated Payment System, with the large-value real-time clearing system as the core, has been brought into operation. But it seems hard for us to handle the arising legal disputes with existing laws and regulations. Although we have UNCITRAL Model Law on International Credit Transfers and America's Uniform Commercial Code as models for our legislation, we cannot completely copy them without any amendment because of the great difference on our social environment and family of law.This article analyses the related problems based on the provisions of Article 4A of Uniform Commercial Code, meanwhile takes fully account of the feature and practical situation of China. It focuses on four kinds of errors on payment in the process of large-value electronic funds transfer, including unauthorized payment order, misdescription of payment order, faults of payment order and erroneous execution of payment order. This article discusses the rights and obligations of each party under different occasions in details and brings forward the suggestions for the legislation of our country concerning the errors on payment in the process of the large-value electronic funds transfer.