Vermont § 406 - § 4A—406.

§ 406. § 4A—406.

• Payment by originator to beneficiary; discharge of underlying obligation (a) Subject to subsections 4A—211(e), 4A—405(d), and 4A—405(e) of this title, 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. (b) If payment under subsection (a) of this section 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
  (a) of this section 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  were not withdrawn by the beneficiary or applied to a debt of the beneficiary, and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 subsection 4A—404(a) of this title. (c) For the purpose of determining whether discharge of an obligation occurs under subsection
  (b) of this section, 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. (d) 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. (Added 1993, No. 158 (Adj. Sess.), § 14, eff. Jan. 1, 1995.)