Laws Lawyers Find Laws Legal Forms State Laws Bills

MARYLAND STATUTES AND CODES

Section 404 - Obligation of beneficiary's bank to pay and give notice to beneficiary.

Listen
§ 4A-404. Obligation of beneficiary's bank to pay and give notice to beneficiary.(a)Subject to §§ 4A-211 (e) and 4A-405 (d) and (e) of this title, if a beneficiary's bank accepts a payment order, the bank is obliged to pay the amount of the order to the beneficiary of the order. Payment is due on the payment date of the order, but if acceptance occurs on the payment date after the close of the funds-transfer business day of the bank, payment is due on the next funds-transfer business day. If the bank refuses to pay after demand by the beneficiary and receipt of notice of particular circumstances that will give rise to consequential damages as a result of nonpayment, the beneficiary may recover damages resulting from the refusal to pay to the extent the bank had notice of the damages, unless the bank proves that it did not pay because of a reasonable doubt concerning the right of the beneficiary to payment.(b)If a payment order accepted by the beneficiary's bank instructs payment to an account of the beneficiary, the bank is obliged to notify the beneficiary of receipt of the order before midnight of the next funds-transfer business day following the payment date. If the payment order does not instruct payment to an account of the beneficiary, the bank is required to notify the beneficiary only if notice is required by the order. Notice may be given by first class mail or any other means reasonable in the circumstances. If the bank fails to give the required notice, the bank is obliged to pay interest to the beneficiary on the amount of the payment order from the day notice should have been given until the day the beneficiary learned of receipt of the payment order by the bank. No other damages are recoverable. Reasonable attorney's fees are also recoverable if demand for interest is made and refused before an action is brought on the claim.(c)The right of a beneficiary to receive payment and damages as stated in subsection (a) of this section may not be varied by agreement or a funds-transfer system rule. The right of a beneficiary to be notified as stated in subsection (b) of this section may be varied by agreement of the beneficiary or by a funds-transfer system rule if the beneficiary is notified of the rule before initiation of the funds transfer. [1991, ch. 548.]
Loading...
  • Play
  • Pause
  • Volume:
  • Mute
  • Half
  • Max
  • § 4A-404. Obligation of beneficiary's bank to pay and give notice to beneficiary.
     

    (a)  Subject to §§ 4A-211 (e) and 4A-405 (d) and (e) of this title, if a beneficiary's bank accepts a payment order, the bank is obliged to pay the amount of the order to the beneficiary of the order. Payment is due on the payment date of the order, but if acceptance occurs on the payment date after the close of the funds-transfer business day of the bank, payment is due on the next funds-transfer business day. If the bank refuses to pay after demand by the beneficiary and receipt of notice of particular circumstances that will give rise to consequential damages as a result of nonpayment, the beneficiary may recover damages resulting from the refusal to pay to the extent the bank had notice of the damages, unless the bank proves that it did not pay because of a reasonable doubt concerning the right of the beneficiary to payment. 

    (b)  If a payment order accepted by the beneficiary's bank instructs payment to an account of the beneficiary, the bank is obliged to notify the beneficiary of receipt of the order before midnight of the next funds-transfer business day following the payment date. If the payment order does not instruct payment to an account of the beneficiary, the bank is required to notify the beneficiary only if notice is required by the order. Notice may be given by first class mail or any other means reasonable in the circumstances. If the bank fails to give the required notice, the bank is obliged to pay interest to the beneficiary on the amount of the payment order from the day notice should have been given until the day the beneficiary learned of receipt of the payment order by the bank. No other damages are recoverable. Reasonable attorney's fees are also recoverable if demand for interest is made and refused before an action is brought on the claim. 

    (c)  The right of a beneficiary to receive payment and damages as stated in subsection (a) of this section may not be varied by agreement or a funds-transfer system rule. The right of a beneficiary to be notified as stated in subsection (b) of this section may be varied by agreement of the beneficiary or by a funds-transfer system rule if the beneficiary is notified of the rule before initiation of the funds transfer. 
     

    [1991, ch. 548.] 
     

    Maryland Forms by Issue

    Maryland Court Forms
    >
    >
    >
    >
    >
    >
    >
    >
    >
    >
    >
    >
    >
    >
    >
    >
    >
    >

    Maryland Law

    Maryland State Laws
        > Maryland Child Support
        > Maryland Gun Law
        > Maryland Statutes
    Maryland Court
        > District Court of Maryland
        > Maryland Court Cases
        > Maryland Court Records
        > Maryland Judiciary
        > Maryland Judiciary Case Search
        > Mcculloch v. Maryland
    Maryland Tax
        > Maryland State Tax
    Maryland Labor Laws
        > Maryland Unemployment
    Maryland Agencies
        > Maryland Department of Assessments and Taxation
        > Maryland Department of Motor Vehicles
        > Maryland State Police

    Maryland Court Map

    Tips