8.4A-302 - A-302. Obligations of receiving bank in execution of payment order.
§ 8.4A-302. Obligations of receiving bank in execution of payment order.
(a) Except as provided in subsections (b) through (d) of this section, if thereceiving bank accepts a payment order pursuant to subsection (a) of §8.4A-209, the bank has the following obligations in executing the order:
(1) The receiving bank is obliged to issue, on the execution date, a paymentorder complying with the sender's order and to follow the sender'sinstructions concerning (i) any intermediary bank or funds-transfer system tobe used in carrying out the funds transfer, or (ii) the means by whichpayment orders are to be transmitted in the funds transfer. If theoriginator's bank issues a payment order to an intermediary bank, theoriginator's bank is obliged to instruct the intermediary bank according tothe instruction of the originator. An intermediary bank in the fundstransfer is similarly bound by an instruction given to it by the sender ofthe payment order it accepts.
(2) If the sender's instruction states that the funds transfer is to becarried out telephonically or by wire transfer or otherwise indicates thatthe funds transfer is to be carried out by the most expeditious means, thereceiving bank is obliged to transmit its payment order by the mostexpeditious available means, and to instruct any intermediary bankaccordingly. If a sender's instruction states a payment date, the receivingbank is obliged to transmit its payment order at a time and by meansreasonably necessary to allow payment to the beneficiary on the payment dateor as soon thereafter as is feasible.
(b) Unless otherwise instructed, a receiving bank executing a payment ordermay (i) use any funds-transfer system if use of that system is reasonable inthe circumstances, and (ii) issue a payment order to the beneficiary's bankor to an intermediary bank through which a payment order conforming to thesender's order can expeditiously be issued to the beneficiary's bank if thereceiving bank exercises ordinary care in the selection of the intermediarybank. A receiving bank is not required to follow an instruction of thesender designating a funds-transfer system to be used in carrying out thefunds transfer if the receiving bank, in good faith, determines that it isnot feasible to follow the instruction or that following the instructionwould unduly delay completion of the funds transfer.
(c) Unless subdivision (a) (2) of this section applies or the receiving bankis otherwise instructed, the bank may execute a payment order by transmittingits payment order by first class mail or by any means reasonable in thecircumstances. If the receiving bank is instructed to execute the sender'sorder by transmitting its payment order by a particular means, the receivingbank may issue its payment order by the means stated or by any means asexpeditious as the means stated.
(d) Unless instructed by the sender, (i) the receiving bank may not obtainpayment of its charges for services and expenses in connection with theexecution of the sender's order by issuing a payment order in an amount equalto the amount of the sender's order less the amount of the charges, and (ii)may not instruct a subsequent receiving bank to obtain payment of its chargesin the same manner.
(1990, c. 9.)