2006 New York Code - Obligations Of Receiving Bank In Execution Of Payment Order.

 
  Section 4-A-302. Obligations  of  Receiving Bank in Execution of Payment
                     Order.
    (1) Except  as  provided  in  subsections  (2)  through  (4);  if  the
  receiving  bank  accepts  a  payment order pursuant to subsection (1) of
  Section 4-A-209, the bank has the following obligations in executing the
  order:
         (a) The receiving bank is obliged  to  issue,  on  the  execution
             date,  a  payment order complying with the sender's order and
             to  follow  the  sender's  instructions  concerning  (i)  any
             intermediary  bank  or  funds-transfer  system  to be used in
             carrying out the funds transfer, or (ii) the means  by  which
             payment  orders  are to be transmitted in the funds transfer.
             If the  originator's  bank  issues  a  payment  order  to  an
             intermediary  bank,  the  originator's  bank  is  obliged  to
             instruct the intermediary bank according to  the  instruction
             of the originator. An intermediary bank in the funds transfer
             is  similarly  bound  by  an  instruction  given to it by the
             sender of the payment order it accepts.
         (b) If the sender's instruction states that the funds transfer is
             to be carried out  telephonically  or  by  wire  transfer  or
             otherwise  indicates that the funds transfer is to be carried
             out by the most expeditious  means,  the  receiving  bank  is
             obliged to transmit its payment order by the most expeditious
             available  means,  and  to  instruct  any  intermediary  bank
             accordingly. If a sender's instruction states a payment date,
             the receiving bank is obliged to transmit its  payment  order
             at  a time and by means reasonably necessary to allow payment
             to the beneficiary on the payment date or as soon  thereafter
             as is feasible.
    (2)  Unless otherwise instructed, a receiving bank executing a payment
  order may (i) use any funds-transfer system if use  of  that  system  is
  reasonable  in  the circumstances, and (ii) issue a payment order to the
  beneficiary's bank or to an intermediary bank through  which  a  payment
  order  conforming  to  the sender's order can expeditiously be issued to
  the beneficiary's bank if the receiving bank exercises ordinary care  in
  the selection of the intermediary bank. A receiving bank is not required
  to  follow  an  instruction  of  the sender designating a funds-transfer
  system to be used in carrying out the funds transfer  if  the  receiving
  bank,  in  good  faith, determines that it is not feasible to follow the
  instruction  or  that  following  the  instruction  would  unduly  delay
  completion of the funds transfer.
    (3)  Unless  paragraph  (b) of subsection (1) applies or the receiving
  bank is otherwise instructed, the bank may execute a  payment  order  by
  transmitting  its  payment  order  by  first  class mail or by any means
  reasonable in the circumstances. If the receiving bank is instructed  to
  execute  the  sender's  order  by  transmitting  its  payment order by a
  particular means, the receiving bank may issue its payment order by  the
  means stated or by any means as expeditious as the means stated.
    (4)  Unless  instructed  by  the sender (i) the receiving bank may not
  obtain payment of its charges for services and  expenses  in  connection
  with  the  execution of the sender's order by issuing a payment order in
  an amount equal to the amount of the sender's order less the  amount  of
  the  charges,  and  (ii) may not instruct a subsequent receiving bank to
  obtain payment of its charges in the same manner.