8.4A-402 - A-402. Obligation of sender to pay receiving bank.
§ 8.4A-402. Obligation of sender to pay receiving bank.
(a) This section is subject to §§ 8.4A-205 and 8.4A-207.
(b) 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 theamount of the order, but payment is not due until the payment date of theorder.
(c) This subsection is subject to subsection (e) of this section, and to §8.4A-303. With respect to a payment order issued to a receiving bank otherthan the beneficiary's bank, acceptance of the order by the receiving bankobliges the sender to pay the bank the amount of the sender's order. Paymentby the sender is not due until the execution date of the sender's order. Theobligation of that sender to pay its payment order is excused if the fundstransfer is not completed by acceptance by the beneficiary's bank of apayment order instructing payment to the beneficiary of that sender's paymentorder.
(d) If the sender of a payment order pays the order and was not obliged topay all or part of the amount paid, the bank receiving payment is obliged torefund payment to the extent the sender was not obliged to pay. Except asprovided in §§ 8.4A-204 and 8.4A-304, interest is payable on the refundableamount from the date of payment.
(e) If a funds transfer is not completed as stated in subsection (c) of thissection, and an intermediary bank is obliged to refund payment as stated insubsection (d) of this section, but is unable to do so because not permittedby applicable law or because the bank suspends payments, a sender in thefunds transfer that executed a payment order in compliance with aninstruction, as stated in subdivision (a) (1) of § 8.4A-302, to route thefunds transfer through that intermediary bank is entitled to receive orretain payment from the sender of the payment order that it accepted. Thefirst sender in the funds transfer that issued an instruction requiringrouting through that intermediary bank is subrogated to the right of the bankthat paid the intermediary bank to refund as stated in subsection (d) of thissection.
(f) The right of the sender of a payment order to be excused from theobligation to pay the order as stated in subsection (c) of this section, orto receive refund under subsection (d) of this section, may not be varied byagreement.
(1990, c. 9.)