North Dakota § 41-04.1-31 (4A-406) Payment by originator to beneficiary - Discharge of underlying obligation

North Dakota Statutes

§ 41-04.1-31 — (4A-406) Payment by originator to beneficiary - Discharge of underlying obligation

North Dakota § 41-04.1-31

Title 41Uniform Commercial Code

Ch. 41-04.1Funds Transfers

This text of North Dakota § 41-04.1-31 ((4A-406) Payment by originator to beneficiary - Discharge of underlying obligation) 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 § 41-04.1-31 (2026).

Text

obligation.

1.Subject to subsection 5 of section 41-04.1-19 and to subsections 4 and 5 of section 41-04.1-30, the originator of a funds transfer pays the beneficiary of the originator's payment order at the time a payment order for the benefit of the beneficiary is accepted by the beneficiary's bank in the funds transfer and in an amount equal to the amount of the order accepted by the beneficiary's bank, but not more than the amount of the originator's order.

2.If payment under subsection 1 is made to satisfy an obligation, the obligation is discharged to the same extent discharge would result from payment to the beneficiary of the same amount in money, unless the payment under subsection 1 was made by a means prohibited by the contract of the beneficiary with respect to the obligation;

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obligation.
1. Subject to subsection 5 of section 41-04.1-19 and to subsections 4 and 5 of section
41-04.1-30, the originator of a funds transfer pays the beneficiary of the originator's
payment order at the time a payment order for the benefit of the beneficiary is
accepted by the beneficiary's bank in the funds transfer and in an amount equal to the
amount of the order accepted by the beneficiary's bank, but not more than the amount
of the originator's order.
2. If payment under subsection 1 is made to satisfy an obligation, the obligation is
discharged to the same extent discharge would result from payment to the beneficiary
of the same amount in money, unless the payment under subsection 1 was made by a
means prohibited by the contract of the beneficiary with respect to the obligation; the
beneficiary, within a reasonable time after receiving notice of receipt of the order by the
beneficiary's bank, notified the originator of the beneficiary's refusal of the payment;
funds with respect to the order were not withdrawn by the beneficiary or applied to a
debt of the beneficiary; and the beneficiary would suffer a loss that could reasonably
have been avoided if payment had been made by a means complying with the
contract. If payment by the originator does not result in discharge under this section,
the originator is subrogated to the rights of the beneficiary to receive payment from the
beneficiary's bank under subsection 1 of section 41-04.1-29.
3. For the purpose of determining whether discharge of an obligation occurs under
subsection 2, if the beneficiary's bank accepts a payment order in an amount equal to
the amount of the originator's payment order less charges of one or more receiving
banks in the funds transfer, payment to the beneficiary is deemed to be in the amount
of the originator's order unless upon demand by the beneficiary the originator does not
pay the beneficiary the amount of the deducted charges.
4. Rights of the originator or of the beneficiary of a funds transfer under this section may
be varied only by agreement of the originator and the beneficiary.