Utah § 7-28-106 - Payment to beneficiary by bank.

Full text of Utah Utah Code § 7-28-106 — Payment to beneficiary by bank., with citation guidance and answers to common questions.

§ 7-28-106. Payment to beneficiary by bank.

Effective 5/7/2025
7-28-106.  Payment to beneficiary by bank.
(1)Unless the account agreement provides otherwise, the bank is obligated to pay a beneficiary if there are sufficient actually and finally collected funds in the balance of the special deposit.
(2)Except as provided in Subsection (3), the obligation to pay the beneficiary is excused if the funds available in the special deposit are insufficient to cover such payment.
(3)
(a)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.
(b)Payment to the beneficiary making the election under this Subsection (3) 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.
(4)Unless the account agreement provides otherwise, the obligation of the bank obligated to pay a beneficiary is immediately due and payable.
(5)The bank may discharge the bank's obligation under this section by:
(a)crediting another transaction account of the beneficiary; or
(b)taking other action that:
(i)is permitted under the account agreement for the bank to obtain a discharge; or
(ii)otherwise would constitute a discharge under law.
(6)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 (5) would constitute a discharge of the obligation of the other person under law that determines whether an obligation is satisfied.


Enacted by Chapter 482, 2025 General Session

Source: official Utah text · Last verified 2026-08-27

Related Utah Legal Topics

Frequently Asked Questions About Utah § 7-28-106

What does Utah Code § 7-28-106 cover?

Section 7-28-106 ("Payment to beneficiary by bank.") is part of the Utah Code, the codified statutory law of Utah. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite Utah § 7-28-106?

A common citation format is "Utah Code § 7-28-106" (Utah). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.

Is this the official text of Utah law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.

How does Utah § 7-28-106 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Utah can advise on how this section applies to you. Contact your state or local bar association for a referral.

Sources & Verification

Not legal advice. Verify against the official source and consult a licensed attorney in Utah.