§ 54D-7. Payment to beneficiary by bank.

302 words·~1 min read·/nc/chapter-54d/54d-7

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Unless the account agreement provides otherwise, the bank shall discharge its obligation to a beneficiary when it is obligated to pay the beneficiary and there are sufficient actually and finally collected funds in the balance of the special deposit.

(b)Except as provided in subsection

(c)of this section, the obligation to pay the beneficiary is excused if the funds available in the special deposit are insufficient to cover the payment.

(c)Unless the account agreement provides otherwise, if the funds available in the special deposit are insufficient to cover an obligation to pay a beneficiary, a beneficiary may elect to be paid the funds that are available or, if there is more than one beneficiary, a pro rata share of the funds available. Payment to the beneficiary making the election under this subsection discharges the bank's obligation to pay a beneficiary and does not constitute an accord and satisfaction with respect to another person obligated to the beneficiary.

(d)Unless the account agreement provides otherwise, the obligation of the bank obligated to pay a beneficiary is immediately due and payable.

(e)The bank may discharge its obligation under this section by doing either of the following:

(1)Crediting another transaction account of the beneficiary.

(2)Taking other action that either is permitted under the account agreement for the bank to obtain a discharge or otherwise would constitute a discharge under law.

(f)If the bank obligated to pay a beneficiary has incurred an obligation to discharge the obligation of another person, the obligation of the other person is discharged if action by the bank under subsection

(e)of this section would constitute a discharge of the obligation of the other person under law that determines whether an obligation is satisfied. (2025-25, s. 158.)