336.4A-402 OBLIGATION OF SENDER TO PAY RECEIVING BANK.
(a) This section is subject to sections
(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 the amount of the order, but payment is not due
until the payment date of the order.
(c) This subsection is subject to subsection (e) and to section
. 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.
(d) 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
, interest is
payable on the refundable amount from the date of payment.
(e) If a funds transfer is not completed as stated in subsection (c) and an intermediary bank is
obliged to refund payment as stated in subsection (d) 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 section
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 (d).
(f) The right of the sender of a payment order to be excused from the obligation to pay the
order as stated in subsection (c) or to receive refund under subsection (d) may not be varied
History: 1990 c 582 art 1 s 27