North Dakota § 41-04.1-27 (4A-402) Obligation of sender to pay receiving bank

North Dakota Statutes

§ 41-04.1-27 — (4A-402) Obligation of sender to pay receiving bank

North Dakota § 41-04.1-27

Title 41Uniform Commercial Code

Ch. 41-04.1Funds Transfers

This text of North Dakota § 41-04.1-27 ((4A-402) Obligation of sender to pay receiving bank) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.D. Cent. Code § 41-04.1-27 (2026).

Text

1.This section is subject to sections 41-04.1-13 and 41-04.1-15.

2.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.

3.This subsection is subject to subsection 5 and to section 41-04.1-23. 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 o

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1. This section is subject to sections 41-04.1-13 and 41-04.1-15.
2. 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.
3. This subsection is subject to subsection 5 and to section 41-04.1-23. 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.
4. 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 sections 41-04.1-12
and 41-04.1-24, 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 intermediary bank
is obliged to refund payment as stated in subsection 4 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 subdivision a of subsection 1 of section 41-04.1-22, 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 4.
6. The right of the sender of a payment order to be excused from the obligation to pay
the order as stated in subsection 3 or to receive refund under subsection 4 may not be
varied by agreement.