Nevada § 104A.4406 - Payment by originator to beneficiary; discharge of underlying obligation

§ 104A.4406. Payment by originator to beneficiary; discharge of underlying obligation

1. Except as otherwise provided in subsection 5 of NRS 104A.4211 and subsections 4 and 5 of NRS 104A.4405 , the originator of a funds transfer pays the beneficiary of the originator's payment

order at the time a payment order for the benefit of the beneficiary is accepted by

the beneficiary's bank in the funds transfer and 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. 2. If payment under subsection 1 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: (a) The payment under subsection 1 was made by a means prohibited by the contract

of the beneficiary with respect to the obligation; (b) 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refusal of the payment; (c) Funds with respect to the order were not withdrawn by the beneficiary or applied

to a debt of the beneficiary; and (d) 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 1 of NRS 104A.4404 . 3. For the purpose of determining whether discharge of an obligation occurs under

subsection 2, 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. 4. 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.