47-4A402. Obligation of sender to pay
receiving bank


A. This section is subject to sections 47-4A205 and 47-4A207.


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 of this section and to section
47-4A303. 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 47-4A204
and 47-4A304, 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 of this section
and an intermediary bank is obliged to refund payment as stated in subsection D of this
section 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 47-4A302, subsection A, paragraph 1,
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 of this section.


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 of this section or to receive refund under
subsection D of this section may not be varied by agreement.