§ 6A-4.1-405 Payment by beneficiary's bankto beneficiary. – (a) If the beneficiary's bank credits an account of the beneficiary of apayment order, payment of the bank's obligation under § 6A-4.1-404(a)occurs when and to the extent (i) the beneficiary is notified of the right towithdraw the 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 the beneficiary's bank does not credit an account ofthe beneficiary of a payment order, the time when payment of the bank'sobligation under § 6A-4.1-404(a) occurs is governed by principles of lawthat determine when an obligation is satisfied.
(c) Except as stated in subsections (d) and (e), if thebeneficiary's bank pays the beneficiary of a payment order under a condition topayment or agreement of the beneficiary giving the bank the right to recoverpayment from the beneficiary if the bank does not receive payment of the order,the condition of payment of the order, the condition to payment or agreement isnot enforceable.
(d) A funds transfer system rule may provide that paymentsmade to beneficiaries of funds transfers made through the system areprovisional until receipt of payment by the beneficiary's bank of the paymentorder it accepted. A beneficiary's bank that makes a payment that isprovisional under the rule is entitled to a refund from the beneficiary if (i)the rule requires that both the beneficiary and the originator be given noticeof the provisional nature of the payment before the funds transfer isinitiated, (ii) the beneficiary, the beneficiary's bank and the originator'sbank agreed to be bound by the rule, and (iii) the beneficiary's bank did notreceive payment of the payment order that it is accepted. If the beneficiary isobliged to refund payment to the beneficiary's bank, acceptance of the paymentorder by the beneficiary's bank is nullified and no payment by the originatorof the funds transfer to the beneficiary occurs under § 6A-4.1-406.
(e) This subsection applies to a funds transfer that includesa payment order transmitted over a funds transfer system that (i) netsobligations multilaterally among participants, and (ii) has in effect a losssharing agreement among participants for the purpose of providing fundsnecessary to complete settlement of the obligations of one or more participantsthat do not meet their settlement obligations. If the beneficiary's bank in thefunds transfer accepts a payment order and the system fails to completesettlement pursuant to its rules with respect to any payment order in the fundstransfer, (i) the acceptance by the beneficiary's bank is nullified and noperson has any right or obligation based on the acceptance, (ii) thebeneficiary's bank is entitled to recover payment from the beneficiary, (iii)no payment by the originator to the beneficiary occurs under § 6A-4.1-406,and (iv) subject to § 6A-4.1-402(e), each sender in the funds transfer isexcused from its obligation to pay its payment order under § 6A-4.1-402(c)because the funds transfer has not been completed.
§ 6A-4.1-405 Payment by beneficiary's bankto beneficiary. – (a) If the beneficiary's bank credits an account of the beneficiary of apayment order, payment of the bank's obligation under § 6A-4.1-404(a)occurs when and to the extent (i) the beneficiary is notified of the right towithdraw the 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 the beneficiary's bank does not credit an account ofthe beneficiary of a payment order, the time when payment of the bank'sobligation under § 6A-4.1-404(a) occurs is governed by principles of lawthat determine when an obligation is satisfied.
(c) Except as stated in subsections (d) and (e), if thebeneficiary's bank pays the beneficiary of a payment order under a condition topayment or agreement of the beneficiary giving the bank the right to recoverpayment from the beneficiary if the bank does not receive payment of the order,the condition of payment of the order, the condition to payment or agreement isnot enforceable.
(d) A funds transfer system rule may provide that paymentsmade to beneficiaries of funds transfers made through the system areprovisional until receipt of payment by the beneficiary's bank of the paymentorder it accepted. A beneficiary's bank that makes a payment that isprovisional under the rule is entitled to a refund from the beneficiary if (i)the rule requires that both the beneficiary and the originator be given noticeof the provisional nature of the payment before the funds transfer isinitiated, (ii) the beneficiary, the beneficiary's bank and the originator'sbank agreed to be bound by the rule, and (iii) the beneficiary's bank did notreceive payment of the payment order that it is accepted. If the beneficiary isobliged to refund payment to the beneficiary's bank, acceptance of the paymentorder by the beneficiary's bank is nullified and no payment by the originatorof the funds transfer to the beneficiary occurs under § 6A-4.1-406.
(e) This subsection applies to a funds transfer that includesa payment order transmitted over a funds transfer system that (i) netsobligations multilaterally among participants, and (ii) has in effect a losssharing agreement among participants for the purpose of providing fundsnecessary to complete settlement of the obligations of one or more participantsthat do not meet their settlement obligations. If the beneficiary's bank in thefunds transfer accepts a payment order and the system fails to completesettlement pursuant to its rules with respect to any payment order in the fundstransfer, (i) the acceptance by the beneficiary's bank is nullified and noperson has any right or obligation based on the acceptance, (ii) thebeneficiary's bank is entitled to recover payment from the beneficiary, (iii)no payment by the originator to the beneficiary occurs under § 6A-4.1-406,and (iv) subject to § 6A-4.1-402(e), each sender in the funds transfer isexcused from its obligation to pay its payment order under § 6A-4.1-402(c)because the funds transfer has not been completed.
§ 6A-4.1-405 Payment by beneficiary's bankto beneficiary. – (a) If the beneficiary's bank credits an account of the beneficiary of apayment order, payment of the bank's obligation under § 6A-4.1-404(a)occurs when and to the extent (i) the beneficiary is notified of the right towithdraw the 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 the beneficiary's bank does not credit an account ofthe beneficiary of a payment order, the time when payment of the bank'sobligation under § 6A-4.1-404(a) occurs is governed by principles of lawthat determine when an obligation is satisfied.
(c) Except as stated in subsections (d) and (e), if thebeneficiary's bank pays the beneficiary of a payment order under a condition topayment or agreement of the beneficiary giving the bank the right to recoverpayment from the beneficiary if the bank does not receive payment of the order,the condition of payment of the order, the condition to payment or agreement isnot enforceable.
(d) A funds transfer system rule may provide that paymentsmade to beneficiaries of funds transfers made through the system areprovisional until receipt of payment by the beneficiary's bank of the paymentorder it accepted. A beneficiary's bank that makes a payment that isprovisional under the rule is entitled to a refund from the beneficiary if (i)the rule requires that both the beneficiary and the originator be given noticeof the provisional nature of the payment before the funds transfer isinitiated, (ii) the beneficiary, the beneficiary's bank and the originator'sbank agreed to be bound by the rule, and (iii) the beneficiary's bank did notreceive payment of the payment order that it is accepted. If the beneficiary isobliged to refund payment to the beneficiary's bank, acceptance of the paymentorder by the beneficiary's bank is nullified and no payment by the originatorof the funds transfer to the beneficiary occurs under § 6A-4.1-406.
(e) This subsection applies to a funds transfer that includesa payment order transmitted over a funds transfer system that (i) netsobligations multilaterally among participants, and (ii) has in effect a losssharing agreement among participants for the purpose of providing fundsnecessary to complete settlement of the obligations of one or more participantsthat do not meet their settlement obligations. If the beneficiary's bank in thefunds transfer accepts a payment order and the system fails to completesettlement pursuant to its rules with respect to any payment order in the fundstransfer, (i) the acceptance by the beneficiary's bank is nullified and noperson has any right or obligation based on the acceptance, (ii) thebeneficiary's bank is entitled to recover payment from the beneficiary, (iii)no payment by the originator to the beneficiary occurs under § 6A-4.1-406,and (iv) subject to § 6A-4.1-402(e), each sender in the funds transfer isexcused from its obligation to pay its payment order under § 6A-4.1-402(c)because the funds transfer has not been completed.
