LAW OF THE REPUBLIC OF ARMENIA

of January 7, 1997 No. ZR-100

About money transfers according to the payment order

Chapter 1. General provisions

Article 1. Subject of regulation of the Law

This Law determines legal regime of money transfers by the payment order and the rights and obligations of participants of the transaction of money transfer on the payment order in the Republic of Armenia, and also their responsibility for non-execution or improper execution of obligations.

Article 2. Money transfer according to the payment order

Money transfer according to the payment order (further - money transfer) - the combination of the consecutive actions performed for the purpose of payment of the provided amount to the beneficiary specified in it beginning with presentation by the payer of the payment order. Money transfer includes the payment order sent by payer bank or intermediary bank to the following bank for the purpose of execution of the payment order of the payer. Money transfer comes to the end with acceptance of the payment order of the payer by bank of benetsifiar for benefit of the beneficiary.

Article 3. Payment order

1. The payment order is this to bank in oral form or by electronic method the order to pay or charge to other bank to pay to the beneficiary the fixed or calculated amount if:

a) the order, except payment due date, does not establish other payment term of the beneficiary and

b) the bank receiver receives from the sender compensation by debiting of the account of the sender or otherwise,

c) the sender directly or indirectly - through the agent, money transfer system or telecommunication system - delivers the message to bank receiver.

If the order conforming to the requirements established by the first paragraph of this Item provides making more than one payment on the beneficiary, then it is the personal payment order on each payment.

2. The amount of the payment order is the amount specified in the payment order which is subject to payment to the beneficiary.

3. Central Bank for the purpose of ensuring smoothness of activities of payment and settlement system can establish details of payment orders, orders about their cancellation and notices.

Article 4. Participants of the transaction of money transfer

1. Participants of the transaction of money transfer are the parties of transactions necessary for money transfer implementation, - the sender, bank receiver and the beneficiary.

2. The sender - person sending (delivering) payment order to bank receiver. The payer, the payer bank and intermediary bank (intermediary banks) can be senders.

3. The payer - the bearer of the first payment order about money transfer.

4. The payer bank is the bank receiving the payment order from the payer. If the payer is bank, then it is also payer bank.

5. Intermediary bank - any bank receiver, except payer banks and the beneficiary.

6. The bank receiver is bank to which the payment order of the sender is addressed (payer bank, intermediary bank (intermediary banks) and bank of the beneficiary).

7. The beneficiary - the final addressee of the translation of the amount of the payment order of the payer.

8. Bank of the beneficiary - the bank specified in the payment order of the payer:

a) in which there is account of the beneficiary which is subject to crediting according to the payment order of the payer or

b) which according to the payment order of the payer shall pay to the beneficiary the amount of the payment order.

9. The bank, its branches and operational offices (Items) are considered as independent participants of money transfer. The rights and obligations established by this law for banks arising in connection with money transfer in the same way extend to branches and operational offices (Items) of banks.

Article 5. Money transfer systems

Money transfer systems are specialized systems of the message of the Central bank, bank or banks through which payment orders, orders about their cancellation and (or) notices on accounts (statements from accounts) are transferred to the faces addressed in them.

Article 6. Obligation of explanation to the client of essential terms of the contract

1. In case of the conclusion of the agreement on money transfer the bank shall acquaint the client with its rights, obligations and essential terms of the contract properly.

2. In case of non-execution by bank of the obligation established by this Article the agreement in the claim of the client can be nullified.

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