Review of Legal Aspects of Banking Order Payment Performance

Fund transfer through banking system is a common device to fulfill the contractual obligations. This process usually starts with the debtor`s order and finishes with intercession of several banks when the fund is deposited to the creditor´s account. The process of fund transfer has several important aspects legally such as the method of performing the process and its obstacles، and the bank´s deadline for exercising the payment order; however، determining the exact time that the process is finished has significant importance because in that time، the obligated will be discharged and his/her purpose of starting this process will be reached. According to the UNCITRAL model law on international credit transfers [1992]، when the beneficiary bank accepts the payment order، the process will finish، and the issuer will be discharged. Based on the current banking law that beneficiary´s bank is responsible for fund transfer to the beneficiary´s account، this idea seems acceptable in Iran.