Nevada § 104A.4405 - Payment by beneficiary's bank to beneficiary

§ 104A.4405. Payment by beneficiary's bank to beneficiary

1. If the beneficiary's bank credits an account of the beneficiary of a payment order,

payment of the bank's obligation under subsection 1 of NRS 104A.4404 occurs when and to the extent the beneficiary is notified of the right to withdraw

the credit, the bank lawfully applies the credit to a debt of the beneficiary, or

funds with respect to the order are otherwise made available to the beneficiary by

the bank. 2. If the beneficiary's bank does not credit an account of the beneficiary of a payment

order, the time when payment of the bank's obligation under subsection 1 of NRS 104A.4404 occurs is governed by principles of law that determine when an obligation is satisfied. 3. Except as stated in subsections 4 and 5, if the beneficiary's bank pays the beneficiary

of a payment order under a condition to payment or agreement of the beneficiary giving

the bank the right to recover payment from the beneficiary if the bank does not receive

payment of the order, the condition to payment or agreement is not enforceable. 4. A funds-transfer system rule may provide that payments made to beneficiaries of

funds transfers made through the system are provisional until receipt of payment by

the beneficiary's bank of the payment order it accepted. A beneficiary's bank that makes a payment that is provisional under the rule is entitled

to refund from the beneficiary if the rule requires that both the beneficiary and

the originator be given notice of the provisional nature of the payment before the

funds transfer is initiated, the beneficiary, the beneficiary's bank and the originator's

bank agreed to be bound by the rule, and the beneficiary's bank did not receive payment

of the payment order that it accepted. If the beneficiary is obliged to refund payment to the beneficiary's bank, acceptance

of the payment order by the beneficiary's bank is nullified and no payment by the

originator of the funds transfer to the beneficiary occurs under NRS 104A.4406 . 5. This subsection applies to a funds transfer that includes a payment order transmitted

over a funds-transfer system that nets obligations multilaterally among participants,

and has in effect a loss-sharing agreement among participants for the purpose of providing

funds necessary to complete settlement of the obligations of one or more participants

that do not meet their settlement obligations. If the beneficiary's bank in the funds transfer accepts a payment order and the system

fails to complete settlement pursuant to its rules with respect to any payment order

in the funds transfer: (a) The acceptance by the beneficiary's bank is nullified and no person has any right

or obligation based on the acceptance; (b) The beneficiary's bank is entitled to recover payment from the beneficiary; (c) No payment by the originator to the beneficiary occurs under NRS 104A.4406 ; and (d) Subject to subsection 5 of NRS 104A.4402 , each sender in the funds transfer is excused from its obligation to pay its payment

order under subsection 3 of NRS 104A.4402 because the funds transfer has not been completed.