New Jersey § 12a:4a-402

§ 12a:4a-402.

(1) This section is subject to sections 12A:4A-205 and 12A:4A-207 . (2) With respect to a payment order issued to the beneficiary's bank, acceptance of

the order by the bank obliges the sender to pay the bank the amount of the order,

but payment is not due until the payment date of the order. (3) This subsection is subject to subsection (5) and to section 12A:4A-303 . With respect to a payment order issued to a receiving bank other than the beneficiary's

bank, acceptance of the order by the receiving bank obliges the sender to pay the

bank the amount of the sender's order. Payment by the sender is not due until the execution date of the sender's order. The obligation of that sender to pay its payment order is excused if the funds transfer

is not completed by acceptance by the beneficiary's bank of a payment order instructing

payment to the beneficiary of that sender's payment order. (4) If the sender of a payment order pays the order and was not obliged to pay all

or part of the amount paid, the bank receiving payment is obliged to refund payment

to the extent the sender was not obliged to pay. Except as provided in sections 12A:4A-204 and 12A:4A-304 , interest is payable on the refundable amount from the date of payment. (5) If a funds transfer is not completed as stated in subsection (3) and an intermediary

bank is obliged to refund payment as stated in subsection (4) but is unable to do

so because not permitted by applicable law or because the bank suspends payments,

a sender in the funds transfer that executed a payment order in compliance with an

instruction, as stated in section 12A:4A-302(1)(a) , to route the funds transfer through that intermediary bank is entitled to receive

or retain payment from the sender of the payment order that it accepted. The first sender in the funds transfer that issued an instruction requiring routing

through that intermediary bank is subrogated to the right of the bank that paid the

intermediary bank to refund as stated in subsection (4). (6) The right of the sender of a payment order to be excused from the obligation to

pay the order as stated in subsection (3) or to receive refund under subsection (4)

may not be varied by agreement.