70A-4a-402 - Obligation of sender to pay receiving bank. - Utah Statutes

70A-4a-402. Obligation of sender to pay receiving bank.
(1) This section is subject to Section 70A-4a-205.
(2) With respect to a payment order issued to the beneficiary's bank, acceptance of theorder by the bank obliges the sender to pay the bank the amount of the order, but payment is notdue until the payment date of the order.
(3) This subsection is subject to Subsection (5) and to Section 70A-4a-303. With respectto a payment order issued to a receiving bank other than the beneficiary's bank, acceptance of theorder 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 ofthat sender to pay its payment order is excused if the funds transfer is not completed byacceptance by the beneficiary's bank of a payment order instructing payment to the beneficiary ofthe sender's payment order.
(4) If the sender of a payment order pays the order and was not obliged to pay all or partof the amount paid, the bank receiving payment is obliged to refund payment to the extent thesender was not obliged to pay. Except as provided in Sections 70A-4a-204 and 70A-4a-304,interest is payable on the refundable amount from the date of payment.
(5) If a funds transfer is not completed as stated in Subsection (3) and an intermediarybank is obliged to refund payment as stated in Subsection (4), but is unable to do so because notpermitted by applicable law or because the bank suspends payments, a sender in the fundstransfer that executed a payment order in compliance with an instruction, as stated in Subsection70A-4a-302(1)(a), to route the funds transfer through that intermediary bank is entitled to receiveor retain payment from the sender of the payment order that it accepted. The first sender in thefunds transfer that issued an instruction requiring routing through that intermediary bank issubrogated to the right of the bank that paid the intermediary bank to refund as stated inSubsection (4).
(6) The right of the sender of a payment order to be excused from the obligation to paythe order as stated in Subsection (3) or to receive refund under Subsection (4) may not be variedby agreement.

Amended by Chapter 237, 1993 General Session