§ 25-4A-406. Payment by originator to beneficiary; discharge of underlying obligation.
§25‑4A‑406. Payment by originator to beneficiary; discharge ofunderlying obligation.
(a) Subject to G.S. 25‑4A‑211(e),25‑4A‑405(d), and 25‑4A‑405(e), the originator of afunds transfer pays the beneficiary of the originator's payment order (i) atthe time a payment order for the benefit of the beneficiary is accepted by thebeneficiary's bank in the funds transfer and (ii) in an amount equal to theamount of the order accepted by the beneficiary's bank, but not more than theamount of the originator's order.
(b) If payment undersubsection (a) is made to satisfy an obligation, the obligation is dischargedto the same extent discharge would result from payment to the beneficiary ofthe same amount in money, unless (i) the payment under subsection (a) was madeby a means prohibited by the contract of the beneficiary with respect to theobligation, (ii) the beneficiary, within a reasonable time after receivingnotice of receipt of the order by the beneficiary's bank, notified theoriginator of the beneficiary's refusal of the payment, (iii) funds withrespect to the order were not withdrawn by the beneficiary or applied to a debtof the beneficiary, and (iv) the beneficiary would suffer a loss that couldreasonably have been avoided if payment had been made by a means complying withthe contract. If payment by the originator does not result in discharge underthis section, the originator is subrogated to the rights of the beneficiary toreceive payment from the beneficiary's bank under G.S. 25‑4A‑404(a).
(c) For the purpose ofdetermining whether discharge of an obligation occurs under subsection (b), ifthe beneficiary's bank accepts a payment order in an amount equal to the amountof the originator's payment order less charges of one or more receiving banks inthe funds transfer, payment to the beneficiary is deemed to be in the amount ofthe originator's order unless upon demand by the beneficiary the originatordoes not pay the beneficiary the amount of the deducted charges.
(d) Rights of theoriginator or of the beneficiary of a funds transfer under this section may bevaried only by agreement of the originator and the beneficiary. (1993,c. 157, s. 1.)