§25‑4A‑405. Payment by beneficiary's bank to beneficiary.
(a) If thebeneficiary's bank credits an account of the beneficiary of a payment order,payment of the bank's obligation under G.S. 25‑4A‑404(a) occurswhen and to the extent (i) the beneficiary is notified of the right to withdrawthe credit, (ii) the bank lawfully applies the credit to a debt of thebeneficiary, or (iii) funds with respect to the order are otherwise madeavailable to the beneficiary by the bank.
(b) If thebeneficiary's bank does not credit an account of the beneficiary of a paymentorder, the time when payment of the bank's obligation under G.S. 25‑4A‑404(a)occurs is governed by principles of law that determine when an obligation issatisfied.
(c) Except as stated insubsections (d) and (e), if the beneficiary's bank pays the beneficiary of apayment order under a condition to payment or agreement of the beneficiarygiving the bank the right to recover payment from the beneficiary if the bankdoes not receive payment of the order, the condition to payment or agreement isnot enforceable.
(d) A funds‑transfersystem rule may provide that payments made to beneficiaries of funds transfersmade through the system are provisional until receipt of payment by thebeneficiary's bank of the payment order it accepted. A beneficiary's bank thatmakes a payment that is provisional under the rule is entitled to refund fromthe beneficiary if (i) the rule requires that both the beneficiary and theoriginator be given notice of the provisional nature of the payment before thefunds transfer is initiated, (ii) the beneficiary, the beneficiary's bank, andthe originator's bank agreed to be bound by the rule, and (iii) thebeneficiary's bank did not receive payment of the payment order that it accepted. If the beneficiary is obliged to refund payment to the beneficiary's bank,acceptance of the payment order by the beneficiary's bank is nullified and nopayment by the originator of the funds transfer to the beneficiary occurs underG.S. 25‑4A‑406.
(e) This subsectionapplies to a funds transfer that includes a payment order transmitted over afunds‑transfer system that (i) nets obligations multilaterally amongparticipants, and (ii) has in effect a loss‑sharing agreement amongparticipants for the purpose of providing funds necessary to completesettlement of the obligations of one or more participants that do not meettheir settlement obligations. If the beneficiary's bank in the funds transferaccepts a payment order and the system fails to complete settlement pursuant toits rules with respect to any payment order in the funds transfer, (i) theacceptance by the beneficiary's bank is nullified and no person has any rightor obligation based on the acceptance, (ii) the beneficiary's bank is entitledto recover payment from the beneficiary, (iii) no payment by the originator tothe beneficiary occurs under G.S. 25‑4A‑406, and (iv) subject toG.S. 25‑4A‑402(e), each sender in the funds transfer is excusedfrom its obligation to pay its payment order under G.S. 25‑4A‑402(c)because the funds transfer has not been completed. (1993, c. 157, s. 1.)
§25‑4A‑405. Payment by beneficiary's bank to beneficiary.
(a) If thebeneficiary's bank credits an account of the beneficiary of a payment order,payment of the bank's obligation under G.S. 25‑4A‑404(a) occurswhen and to the extent (i) the beneficiary is notified of the right to withdrawthe credit, (ii) the bank lawfully applies the credit to a debt of thebeneficiary, or (iii) funds with respect to the order are otherwise madeavailable to the beneficiary by the bank.
(b) If thebeneficiary's bank does not credit an account of the beneficiary of a paymentorder, the time when payment of the bank's obligation under G.S. 25‑4A‑404(a)occurs is governed by principles of law that determine when an obligation issatisfied.
(c) Except as stated insubsections (d) and (e), if the beneficiary's bank pays the beneficiary of apayment order under a condition to payment or agreement of the beneficiarygiving the bank the right to recover payment from the beneficiary if the bankdoes not receive payment of the order, the condition to payment or agreement isnot enforceable.
(d) A funds‑transfersystem rule may provide that payments made to beneficiaries of funds transfersmade through the system are provisional until receipt of payment by thebeneficiary's bank of the payment order it accepted. A beneficiary's bank thatmakes a payment that is provisional under the rule is entitled to refund fromthe beneficiary if (i) the rule requires that both the beneficiary and theoriginator be given notice of the provisional nature of the payment before thefunds transfer is initiated, (ii) the beneficiary, the beneficiary's bank, andthe originator's bank agreed to be bound by the rule, and (iii) thebeneficiary's bank did not receive payment of the payment order that it accepted. If the beneficiary is obliged to refund payment to the beneficiary's bank,acceptance of the payment order by the beneficiary's bank is nullified and nopayment by the originator of the funds transfer to the beneficiary occurs underG.S. 25‑4A‑406.
(e) This subsectionapplies to a funds transfer that includes a payment order transmitted over afunds‑transfer system that (i) nets obligations multilaterally amongparticipants, and (ii) has in effect a loss‑sharing agreement amongparticipants for the purpose of providing funds necessary to completesettlement of the obligations of one or more participants that do not meettheir settlement obligations. If the beneficiary's bank in the funds transferaccepts a payment order and the system fails to complete settlement pursuant toits rules with respect to any payment order in the funds transfer, (i) theacceptance by the beneficiary's bank is nullified and no person has any rightor obligation based on the acceptance, (ii) the beneficiary's bank is entitledto recover payment from the beneficiary, (iii) no payment by the originator tothe beneficiary occurs under G.S. 25‑4A‑406, and (iv) subject toG.S. 25‑4A‑402(e), each sender in the funds transfer is excusedfrom its obligation to pay its payment order under G.S. 25‑4A‑402(c)because the funds transfer has not been completed. (1993, c. 157, s. 1.)
§25‑4A‑405. Payment by beneficiary's bank to beneficiary.
(a) If thebeneficiary's bank credits an account of the beneficiary of a payment order,payment of the bank's obligation under G.S. 25‑4A‑404(a) occurswhen and to the extent (i) the beneficiary is notified of the right to withdrawthe credit, (ii) the bank lawfully applies the credit to a debt of thebeneficiary, or (iii) funds with respect to the order are otherwise madeavailable to the beneficiary by the bank.
(b) If thebeneficiary's bank does not credit an account of the beneficiary of a paymentorder, the time when payment of the bank's obligation under G.S. 25‑4A‑404(a)occurs is governed by principles of law that determine when an obligation issatisfied.
(c) Except as stated insubsections (d) and (e), if the beneficiary's bank pays the beneficiary of apayment order under a condition to payment or agreement of the beneficiarygiving the bank the right to recover payment from the beneficiary if the bankdoes not receive payment of the order, the condition to payment or agreement isnot enforceable.
(d) A funds‑transfersystem rule may provide that payments made to beneficiaries of funds transfersmade through the system are provisional until receipt of payment by thebeneficiary's bank of the payment order it accepted. A beneficiary's bank thatmakes a payment that is provisional under the rule is entitled to refund fromthe beneficiary if (i) the rule requires that both the beneficiary and theoriginator be given notice of the provisional nature of the payment before thefunds transfer is initiated, (ii) the beneficiary, the beneficiary's bank, andthe originator's bank agreed to be bound by the rule, and (iii) thebeneficiary's bank did not receive payment of the payment order that it accepted. If the beneficiary is obliged to refund payment to the beneficiary's bank,acceptance of the payment order by the beneficiary's bank is nullified and nopayment by the originator of the funds transfer to the beneficiary occurs underG.S. 25‑4A‑406.
(e) This subsectionapplies to a funds transfer that includes a payment order transmitted over afunds‑transfer system that (i) nets obligations multilaterally amongparticipants, and (ii) has in effect a loss‑sharing agreement amongparticipants for the purpose of providing funds necessary to completesettlement of the obligations of one or more participants that do not meettheir settlement obligations. If the beneficiary's bank in the funds transferaccepts a payment order and the system fails to complete settlement pursuant toits rules with respect to any payment order in the funds transfer, (i) theacceptance by the beneficiary's bank is nullified and no person has any rightor obligation based on the acceptance, (ii) the beneficiary's bank is entitledto recover payment from the beneficiary, (iii) no payment by the originator tothe beneficiary occurs under G.S. 25‑4A‑406, and (iv) subject toG.S. 25‑4A‑402(e), each sender in the funds transfer is excusedfrom its obligation to pay its payment order under G.S. 25‑4A‑402(c)because the funds transfer has not been completed. (1993, c. 157, s. 1.)
