New York § 4-A-402 Obligation of Sender to Pay Receiving Bank

New York Statutes

§ 4-A-402 — Obligation of Sender to Pay Receiving Bank

New York § 4-A-402

Law UCCUniform Commercial Code

Part 4Payment

Art. 4-AFunds Transfers

This text of New York § 4-A-402 (Obligation of Sender to Pay Receiving Bank) is published on Counsel Stack Legal Research, covering New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.Y. Uniform Commercial Code § 4-A-402 (2026).

Text

Section 4-A-402. Obligation of Sender to Pay Receiving Bank.\n  (1) This section is subject to Sections 4-A-205 and 4-A-207.\n  (2) With respect to a payment order issued to the beneficiary's bank,\nacceptance of the order by the bank obliges the sender to pay the bank\nthe amount of the order, but payment is not due until the payment date\nof the order.\n  (3) This subsection is subject to subsection (5) and to Section\n4-A-303. With respect to a payment order issued to a receiving bank\nother than the beneficiary's bank, acceptance of the order by the\nreceiving bank obliges the sender to pay the bank the amount of the\nsender's order. Payment by the sender is not due until the execution\ndate of the sender's order. The obligation of that sender to pay its\npayment order is excused if th

Free access — add to your briefcase to read the full text and ask questions with AI

Section 4-A-402. Obligation of Sender to Pay Receiving Bank.\n (1) This section is subject to Sections 4-A-205 and 4-A-207.\n (2) With respect to a payment order issued to the beneficiary's bank,\nacceptance of the order by the bank obliges the sender to pay the bank\nthe amount of the order, but payment is not due until the payment date\nof the order.\n (3) This subsection is subject to subsection (5) and to Section\n4-A-303. With respect to a payment order issued to a receiving bank\nother than the beneficiary's bank, acceptance of the order by the\nreceiving bank obliges the sender to pay the bank the amount of the\nsender's order. Payment by the sender is not due until the execution\ndate of the sender's order. The obligation of that sender to pay its\npayment order is excused if the funds transfer is not completed by\nacceptance by the beneficiary's bank of a payment order instructing\npayment to the beneficiary of that sender's payment order.\n (4) If the sender of a payment order pays the order and was not\nobliged to pay all or part of the amount paid, the bank receiving\npayment is obliged to refund payment to the extent the sender was not\nobliged to pay. Except as provided in Sections 4-A-204 and 4-A-304,\ninterest is payable on the refundable amount from the date of payment.\n (5) If a funds transfer is not completed as stated in subsection (3)\nand an intermediary bank is obliged to refund payment as stated in\nsubsection (4) but is unable to do so because not permitted by\napplicable law or because the bank suspends payments, a sender in the\nfunds transfer that executed a payment order in compliance with an\ninstruction, as stated in paragraph (a) of subsection (1) of Section\n4-A-302, to route the funds transfer through that intermediary bank is\nentitled to receive or retain payment from the sender of the payment\norder that it accepted. The first sender in the funds transfer that\nissued an instruction requiring routing through that intermediary bank\nis subrogated to the right of the bank that paid the intermediary bank\nto refund as stated in subsection (4).\n (6) The right of the sender of a payment order to be excused from the\nobligation to pay the order as stated in subsection (3) or to receive\nrefund under subsection (4) may not be varied by agreement.\n