§12A-4A-406.

§12A-4A-406.
   
   PAYMENT BY ORIGINATOR TO BENEFICIARY; DISCHARGE OF UNDERLYING
   OBLIGATION
   
   (a) Subject to subsection (e) of Section 19 and subsections (d) and
   (e) of Section 30 of this act, the originator of a funds transfer pays
   the beneficiary of the originator's payment order (i) at the time a
   payment order for the benefit of the beneficiary is accepted by the
   beneficiary's bank in the funds transfer and (ii) 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.
   
   (b) If payment under subsection (a) of this section 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 (i) the payment under subsection (a) of this
   section was made by a means prohibited by the contract of the
   beneficiary with respect to the obligation, (ii) 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, (iii) funds with respect to the
   order were not withdrawn by the beneficiary or applied to a debt of
   the beneficiary, and (iv) 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 (a) of Section 29 of this act.
   
   (c) For the purpose of determining whether discharge of an obligation
   occurs under subsection (b), 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.
   
   (d) 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.