New Jersey § 12a:4a-406

§ 12a:4a-406.

(1) Subject to sections 12A:4A-211(5) , 12A:4A-405(4) , and 12A:4A-405(5) , 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. (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 (i) the payment under subsection (1) 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refusal of the payment, (iii) funds with respect to the order were not withdrawn by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 section 12A:4A-404(1) . (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.