§12A-4A-404.

§12A-4A-404.
   
   OBLIGATION OF BENEFICIARY'S BANK TO PAY AND GIVE NOTICE TO BENEFICIARY
   
   (a) Subject to subsection (e) of Section 19 and subsections (d) and
   (e) of Section 30 of this act, if a beneficiary's bank accepts a
   payment order, the bank is obliged to pay the amount of the order to
   the beneficiary of the order. Payment is due on the payment date of
   the order, but if acceptance occurs on the payment date after the
   close of the funds-transfer business day of the bank, payment is due
   on the next funds-transfer business day. If the bank refuses to pay
   after demand by the beneficiary and receipt of notice of particular
   circumstances that will give rise to consequential damages as a result
   of nonpayment, the beneficiary may recover damages resulting from the
   refusal to pay to the extent the bank had notice of the damages,
   unless the bank proves that it did not pay because of a reasonable
   doubt concerning the right of the beneficiary to payment.
   
   (b) If a payment order accepted by the beneficiary's bank instructs
   payment to an account of the beneficiary, the bank is obliged to
   notify the beneficiary of receipt of the order before midnight of the
   next funds-transfer business day following the payment date. If the
   payment order does not instruct payment to an account of the
   beneficiary, the bank is required to notify the beneficiary only if
   notice is required by the order. Notice may be given by first class
   mail or any other means reasonable in the circumstances. If the bank
   fails to give the required notice, the bank is obliged to pay interest
   to the beneficiary on the amount of the payment order from the day
   notice should have been given until the day the beneficiary learned of
   receipt of the payment order by the bank. No other damages are
   recoverable. Reasonable attorney's fees are also recoverable if demand
   for interest is made and refused before an action is brought on the
   claim.
   
   (c) The right of a beneficiary to receive payment and damages as
   stated in subsection (a) of this section may not be varied by
   agreement or a funds-transfer system rule. The right of a beneficiary
   to be notified as stated in subsection (b) of this section may be
   varied by agreement of the beneficiary or by a funds-transfer system
   rule if the beneficiary is notified of the rule before initiation of
   the funds transfer.