(1) This section is subject to Sections 4-A-205 and 4-A-207.
(2) With respect to a payment order issued to the beneficiary's bank,
acceptance of the order by the bank obliges the sender to pay the bank
the amount of the order, but payment is not due until the payment date
of the order.
(3) This subsection is subject to subsection (5) and to Section
4-A-303. With respect to a payment order issued to a receiving bank
other than the beneficiary's bank, acceptance of the order by the
receiving bank obliges the sender to pay the bank the amount of the
sender's order. Payment by the sender is not due until the execution
date of the sender's order. The obligation of that sender to pay its
payment order is excused if the funds transfer is not completed by
acceptance by the beneficiary's bank of a payment order instructing
payment to the beneficiary of that sender's payment order.
(4) If the sender of a payment order pays the order and was not
obliged to pay all or part of the amount paid, the bank receiving
payment is obliged to refund payment to the extent the sender was not
obliged to pay. Except as provided in Sections 4-A-204 and 4-A-304,
interest is payable on the refundable amount from the date of payment.
(5) If a funds transfer is not completed as stated in subsection (3)
and an intermediary bank is obliged to refund payment as stated in
subsection (4) but is unable to do so because not permitted by
applicable law or because the bank suspends payments, a sender in the
funds transfer that executed a payment order in compliance with an
instruction, as stated in paragraph (a) of subsection (1) of Section
4-A-302, to route the funds transfer through that intermediary bank is
entitled to receive or retain payment from the sender of the payment
order that it accepted. The first sender in the funds transfer that
issued an instruction requiring routing through that intermediary bank
is subrogated to the right of the bank that paid the intermediary bank
to refund as stated in subsection (4).
(6) The right of the sender of a payment order to be excused from the
obligation to pay the order as stated in subsection (3) or to receive
refund under subsection (4) may not be varied by agreement.
Structure New York Laws
4-A-402 - Obligation of Sender to Pay Receiving Bank.
4-A-403 - Payment by Sender to Receiving Bank.
4-A-404 - Obligation of Beneficiary's Bank to Pay and Give Notice to Beneficiary.
4-A-405 - Payment by Beneficiary's Bank to Beneficiary.
4-A-406 - Payment by Originator to Beneficiary; Discharge of Underlying Obligation.