2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 4A4 - Payment
Section 4A404 - Obligation of beneficiary's bank to pay and give notice to beneficiary

     § 4A404.  Obligation of beneficiary's bank to pay and give
                notice to beneficiary.
        (a)  Obligation.--Subject to sections 4A211(e) (relating to
     cancellation and amendment of payment order) and 4A405(d) and
     (e) (relating to payment by beneficiary's bank to beneficiary),
     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.
        (b)  Notice.--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 fees are
     also recoverable if demand for interest is made and refused
     before an action is brought on the claim.
        (c)  Prohibition against modification of certain rights of
     beneficiary.--The right of a beneficiary to receive payment and
     damages as stated in subsection (a) may not be varied by
     agreement or a funds-transfer system rule. The right of a
     beneficiary to be notified as stated in subsection (b) 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.

        Cross References.  Section 4A404 is referred to in sections
     4A405, 4A406, 4A501 of this title.