If the beneficiary is obliged to refund payment to the beneficiary's bank, acceptance of the payment order by the beneficiary's bank is nullified and no payment by the originator of the funds transfer to the beneficiary occurs under § 47-4A-406.
The beneficiary is notified of the right to withdraw the credit;
The bank lawfully applies the credit to a debt of the beneficiary; or
Funds with respect to the order are otherwise made available to the beneficiary by the bank.
The rule requires that both the beneficiary and the originator be given notice of the provisional nature of the payment before the funds transfer is initiated;
The beneficiary, the beneficiary's bank and the originator's bank agreed to be bound by the rule; and
The beneficiary's bank did not receive payment of the payment order that it accepted.