§490:4A-402  Obligation of sender to pay
receiving bank.  (a)  This section is subject to sections 490:4A-205 and
490:4A-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 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 490:4A-303.  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 section 490:4A-204 and section
490:4A-304, 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 it is 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 490:4A-302(a)(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).



(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 by agreement. [L
1991, c 41, pt of §1]