§490:4A-404  Obligation of beneficiary's
bank to pay and give notice to beneficiary.  (a)  Subject to sections
490:4A-211(e), 490:4A-405(d), and 490:4A-405(e), 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) 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) 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. [L 1991, c 41, pt of §1]