2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 4A4 - Payment
Section 4A402 - Obligation of sender to pay receiving bank

     § 4A402.  Obligation of sender to pay receiving bank.
        (a)  Scope of section.--This section is subject to sections
     4A205 (relating to erroneous payment orders) and 4A207 (relating
     to misdescription of beneficiary).
        (b)  Payment order issued to beneficiary's bank.--With
     respect to a payment order issued to the beneficiary's bank,
     acceptance of the order by the bank obliges the sender to pay
     the bank the amount of the order, but payment is not due until
     the payment date of the order.
        (c)  Payment order issued to receiving bank other than
     beneficiary's bank.--This subsection is subject to subsection
     (e) and to section 4A303 (relating to erroneous execution of
     payment order). With respect to a payment order issued to a
     receiving bank other than the beneficiary's bank, acceptance of
     the order by the receiving bank obliges the sender to pay the
     bank the amount of the sender's order. Payment by the sender is
     not due until the execution date of the sender's order. The
     obligation of that sender to pay its payment order is excused if
     the funds transfer is not completed by acceptance by the
     beneficiary's bank of a payment order instructing payment to the
     beneficiary of that sender's payment order.
        (d)  Refund.--If the sender of a payment order pays the order
     and was not obliged to pay all or part of the amount paid, the
     bank receiving payment is obliged to refund payment to the
     extent the sender was not obliged to pay. Except as provided in
     sections 4A204 (relating to refund of payment and duty of
     customer to report with respect to unauthorized payment order)
     and 4A304 (relating to duty of sender to report erroneously
     executed payment order), interest is payable on the refundable
     amount from the date of payment.
        (e)  Certain subrogation rights.--If a funds transfer is not
     completed as stated in subsection (c) and an intermediary bank
     is obliged to refund payment as stated in subsection (d) but is
     unable to do so because not permitted by applicable law or
     because the bank suspends payments, a sender in the funds
     transfer that executed a payment order in compliance with an
     instruction, as stated in section 4A302(a)(1) (relating to
     obligations of receiving bank in execution of payment order), to
     route the funds transfer through that intermediary bank is
     entitled to receive or retain payment from the sender of the
     payment order that it accepted. The first sender in the funds
     transfer that issued an instruction requiring routing through
     that intermediary bank is subrogated to the right of the bank
     that paid the intermediary bank to refund as stated in
     subsection (d).
        (f)  Prohibition against modification by agreement of certain
     rights of sender.--The right of the sender of a payment order to
     be excused from the obligation to pay the order as stated in
     subsection (c) or to receive refund under subsection (d) may not
     be varied by agreement.

        Cross References.  Section 4A402 is referred to in sections
     4A303, 4A304, 4A403, 4A405 of this title.