2006 New York Code - Obligation Of Beneficiary\'s Bank To Pay And Give Notice To Beneficiary.

 
  Section 4-A-404. Obligation of Beneficiary's Bank to Pay and Give Notice
                     to Beneficiary.
    (1)  Subject  to subsection (5) of Section 4-A-211 and subsections (4)
  and (5) of Section 4-A-405, if a beneficiary's bank  accepts  a  payment
  order,  the  bank  is  obliged  to  pay  the  amount of the order to the
  beneficiary of the order. Payment is due on  the  payment  date  of  the
  order,  but  if acceptance occurs on the payment date after the close of
  the funds-transfer business day of the bank, payment is due on the  next
  funds-transfer  business day. If the bank refuses to pay after demand by
  the beneficiary and receipt of notice of particular  circumstances  that
  will  give  rise to consequential damages as a result of nonpayment, the
  beneficiary may recover damages resulting from the refusal to pay to the
  extent the bank had notice of the damages, unless the bank  proves  that
  it did not pay because of a reasonable doubt concerning the right of the
  beneficiary to payment.
    (2)  If  a  payment order accepted by the beneficiary's bank instructs
  payment to an account of the beneficiary, the bank is obliged to  notify
  the  beneficiary  of  receipt  of  the order before midnight of the next
  funds-transfer business day following the payment date. If  the  payment
  order  does  not  instruct payment to an account of the beneficiary, the
  bank is required to notify the beneficiary only if notice is required by
  the order. Notice may be given by first class mail or  any  other  means
  reasonable  in the circumstances. If the bank fails to give the required
  notice, the bank is obliged to pay interest to the  beneficiary  on  the
  amount  of  the payment order from the day notice should have been given
  until the day the beneficiary learned of receipt of the payment order by
  the bank. No other damages are recoverable. Reasonable  attorney's  fees
  are  also  recoverable if demand for interest is made and refused before
  an action is brought on the claim.
    (3) The right of a beneficiary  to  receive  payment  and  damages  as
  stated   in  subsection  (1)  may  not  be  varied  by  agreement  or  a
  funds-transfer system rule. The right of a beneficiary to be notified as
  stated in subsection (2) may be varied by agreement of  the  beneficiary
  or by a funds-transfer system rule if the beneficiary is notified of the
  rule before initiation of the funds transfer.