State Codes and Statutes

Statutes > North-carolina > Chapter_25 > GS_25-4A-302

§25‑4A‑302.  Obligations of receiving bank in execution of paymentorder.

(a)        Except as providedin subsections (b) through (d), if the receiving bank accepts a payment orderpursuant to G.S. 25‑4A‑209(a), the bank has the followingobligations in executing the order:

(1)        The receiving bankis obliged to issue, on the execution date, a payment order complying with thesender's order and to follow the sender's instructions concerning (i) anyintermediary bank or funds‑transfer system to be used in carrying out thefunds transfer, or (ii) the means by which payment orders are to be transmittedin the funds transfer.  If the originator's bank issues a payment order to anintermediary bank, the originator's bank is obliged to instruct theintermediary bank according to the instruction of the originator.  Anintermediary bank in the funds transfer is similarly bound by an instructiongiven to it by the sender of the payment order it accepts.

(2)        If the sender'sinstruction states that the funds transfer is to be carried out telephonicallyor by wire transfer or otherwise indicates that the funds transfer is to becarried out by the most expeditious means, the receiving bank is obliged totransmit its payment order by the most expeditious available means, and to instructany intermediary bank accordingly.  If a sender's instruction states a paymentdate, the receiving bank is obliged to transmit its payment order at a time andby means reasonably necessary to allow payment to the beneficiary on thepayment date or as soon thereafter as is feasible.

(b)        Unless otherwiseinstructed, a receiving bank executing a payment order may (i) use any funds‑transfersystem if use of that system is reasonable in the circumstances, and (ii) issuea payment order to the beneficiary's bank or to an intermediary bank throughwhich a payment order conforming to the sender's order can expeditiously beissued to the beneficiary's bank if the receiving bank exercises ordinary carein the selection of the intermediary bank.  A receiving bank is not required tofollow an instruction of the sender designating a funds‑transfer systemto be used in carrying out the funds transfer if the receiving bank, in goodfaith, determines that it is not feasible to follow the instruction or thatfollowing the instruction would unduly delay completion of the funds transfer.

(c)        Unless subsection(a)(2) applies or the receiving bank is otherwise instructed, the bank mayexecute a payment order by transmitting its payment order by first class mailor by any means reasonable in the circumstances.  If the receiving bank isinstructed to execute the sender's order by transmitting its payment order by aparticular means, the receiving bank may issue its payment order by the meansstated or by any means as expeditious as the means stated.

(d)        Unless instructedby the sender, (i) the receiving bank may not obtain payment of its charges forservices and expenses in connection with the execution of the sender's order byissuing a payment order in an amount equal to the amount of the sender's orderless the amount of the charges, and (ii) may not instruct a subsequentreceiving bank to obtain payment of its charges in the same manner. (1993,c. 157, s. 1.)

State Codes and Statutes

Statutes > North-carolina > Chapter_25 > GS_25-4A-302

§25‑4A‑302.  Obligations of receiving bank in execution of paymentorder.

(a)        Except as providedin subsections (b) through (d), if the receiving bank accepts a payment orderpursuant to G.S. 25‑4A‑209(a), the bank has the followingobligations in executing the order:

(1)        The receiving bankis obliged to issue, on the execution date, a payment order complying with thesender's order and to follow the sender's instructions concerning (i) anyintermediary bank or funds‑transfer system to be used in carrying out thefunds transfer, or (ii) the means by which payment orders are to be transmittedin the funds transfer.  If the originator's bank issues a payment order to anintermediary bank, the originator's bank is obliged to instruct theintermediary bank according to the instruction of the originator.  Anintermediary bank in the funds transfer is similarly bound by an instructiongiven to it by the sender of the payment order it accepts.

(2)        If the sender'sinstruction states that the funds transfer is to be carried out telephonicallyor by wire transfer or otherwise indicates that the funds transfer is to becarried out by the most expeditious means, the receiving bank is obliged totransmit its payment order by the most expeditious available means, and to instructany intermediary bank accordingly.  If a sender's instruction states a paymentdate, the receiving bank is obliged to transmit its payment order at a time andby means reasonably necessary to allow payment to the beneficiary on thepayment date or as soon thereafter as is feasible.

(b)        Unless otherwiseinstructed, a receiving bank executing a payment order may (i) use any funds‑transfersystem if use of that system is reasonable in the circumstances, and (ii) issuea payment order to the beneficiary's bank or to an intermediary bank throughwhich a payment order conforming to the sender's order can expeditiously beissued to the beneficiary's bank if the receiving bank exercises ordinary carein the selection of the intermediary bank.  A receiving bank is not required tofollow an instruction of the sender designating a funds‑transfer systemto be used in carrying out the funds transfer if the receiving bank, in goodfaith, determines that it is not feasible to follow the instruction or thatfollowing the instruction would unduly delay completion of the funds transfer.

(c)        Unless subsection(a)(2) applies or the receiving bank is otherwise instructed, the bank mayexecute a payment order by transmitting its payment order by first class mailor by any means reasonable in the circumstances.  If the receiving bank isinstructed to execute the sender's order by transmitting its payment order by aparticular means, the receiving bank may issue its payment order by the meansstated or by any means as expeditious as the means stated.

(d)        Unless instructedby the sender, (i) the receiving bank may not obtain payment of its charges forservices and expenses in connection with the execution of the sender's order byissuing a payment order in an amount equal to the amount of the sender's orderless the amount of the charges, and (ii) may not instruct a subsequentreceiving bank to obtain payment of its charges in the same manner. (1993,c. 157, s. 1.)


State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_25 > GS_25-4A-302

§25‑4A‑302.  Obligations of receiving bank in execution of paymentorder.

(a)        Except as providedin subsections (b) through (d), if the receiving bank accepts a payment orderpursuant to G.S. 25‑4A‑209(a), the bank has the followingobligations in executing the order:

(1)        The receiving bankis obliged to issue, on the execution date, a payment order complying with thesender's order and to follow the sender's instructions concerning (i) anyintermediary bank or funds‑transfer system to be used in carrying out thefunds transfer, or (ii) the means by which payment orders are to be transmittedin the funds transfer.  If the originator's bank issues a payment order to anintermediary bank, the originator's bank is obliged to instruct theintermediary bank according to the instruction of the originator.  Anintermediary bank in the funds transfer is similarly bound by an instructiongiven to it by the sender of the payment order it accepts.

(2)        If the sender'sinstruction states that the funds transfer is to be carried out telephonicallyor by wire transfer or otherwise indicates that the funds transfer is to becarried out by the most expeditious means, the receiving bank is obliged totransmit its payment order by the most expeditious available means, and to instructany intermediary bank accordingly.  If a sender's instruction states a paymentdate, the receiving bank is obliged to transmit its payment order at a time andby means reasonably necessary to allow payment to the beneficiary on thepayment date or as soon thereafter as is feasible.

(b)        Unless otherwiseinstructed, a receiving bank executing a payment order may (i) use any funds‑transfersystem if use of that system is reasonable in the circumstances, and (ii) issuea payment order to the beneficiary's bank or to an intermediary bank throughwhich a payment order conforming to the sender's order can expeditiously beissued to the beneficiary's bank if the receiving bank exercises ordinary carein the selection of the intermediary bank.  A receiving bank is not required tofollow an instruction of the sender designating a funds‑transfer systemto be used in carrying out the funds transfer if the receiving bank, in goodfaith, determines that it is not feasible to follow the instruction or thatfollowing the instruction would unduly delay completion of the funds transfer.

(c)        Unless subsection(a)(2) applies or the receiving bank is otherwise instructed, the bank mayexecute a payment order by transmitting its payment order by first class mailor by any means reasonable in the circumstances.  If the receiving bank isinstructed to execute the sender's order by transmitting its payment order by aparticular means, the receiving bank may issue its payment order by the meansstated or by any means as expeditious as the means stated.

(d)        Unless instructedby the sender, (i) the receiving bank may not obtain payment of its charges forservices and expenses in connection with the execution of the sender's order byissuing a payment order in an amount equal to the amount of the sender's orderless the amount of the charges, and (ii) may not instruct a subsequentreceiving bank to obtain payment of its charges in the same manner. (1993,c. 157, s. 1.)