Indiana § 26-1-4.1-402 Obligation of sender to pay receiving bank

Indiana Statutes

§ 26-1-4.1-402 — Obligation of sender to pay receiving bank

Indiana § 26-1-4.1-402

Title 26COMMERCIAL LAW

Art. 1UNIFORM COMMERCIAL CODE

Ch. 4.1Fund Transfers

This text of Indiana § 26-1-4.1-402 (Obligation of sender to pay receiving bank) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 26-1-4.1-402 (2026).

Text

(a)This section is subject to IC 26-1-4.1-205 and IC 26-1-4.1-207.

(b)With respect to a payment order issued to the beneficiary's bank, acceptance of the order by the bank obliges the sender to pay the bank the amount of the order, but payment is not due until the payment date of the order.

(c)This subsection is subject to subsection (e) and to IC 26-1-4.1-303. With respect to a payment order issued to a receiving bank other than the beneficiary's bank, acceptance of the order 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 of that sender to pay its payment order is excused if the funds transfer is not completed by acceptance by the beneficiary's ban

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(a) This section is subject to IC 26-1-4.1-205 and IC 26-1-4.1-207.
(b) With respect to a payment order issued to the beneficiary's bank,
acceptance of the order by the bank obliges the sender to pay the bank
the amount of the order, but payment is not due until the payment date
of the order.
(c) This subsection is subject to subsection (e) and to IC 26-1-4.1-303. With respect to a payment order issued to a receiving
bank other than the beneficiary's bank, acceptance of the order 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 of that sender to pay its
payment order is excused if the funds transfer is not completed by
acceptance by the beneficiary's bank of a payment order instructing
payment to the beneficiary of that sender's payment order.
(d) If the sender of a payment order pays the order and was not
obliged to pay all or part of the amount paid, the bank receiving
payment is obliged to refund payment to the extent the sender was not
obliged to pay. Except as provided in IC 26-1-4.1-204 and IC 26-1-4.1-304, interest is payable on the refundable amount from the
date of payment.
(e) If a funds transfer is not completed as stated in subsection (c)
and an intermediary bank is obliged to refund payment as stated in
subsection (d) but is unable to do so because not permitted by
applicable law or because the bank suspends payments, a sender in the
funds transfer that executed a payment order in compliance with an
instruction, as stated in IC 26-1-4.1-302(a)(1), to route the funds
transfer through that intermediary bank is entitled to receive or retain
payment from the sender of the payment order that it accepted. The
first sender in the funds transfer that issued an instruction requiring
routing through that intermediary bank is subrogated to the right of the
bank that paid the intermediary bank to refund as stated in subsection
(d).
(f) The right of the sender of a payment order to be excused from the
obligation to pay the order as stated in subsection (c) or to receive
refund under subsection (d) may not be varied by agreement.