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Can you summarize MNST 336.4A-404?
UNIFORM COMMERCIAL CODE > OBLIGATION OF BENEFICIARY'S BANK TO PAY AND GIVE NOTICE TO BENEFICIARY.
Short Summary
This legal document governs the obligation of a beneficiary’s bank to pay and provide notice to the beneficiary. If a beneficiary’s bank accepts a payment order, it is obliged to pay the amount of the order to the beneficiary. Payment is due on the payment date, or on the next funds-transfer business day if acceptance occurs after the close of the bank’s funds-transfer business day. If the bank refuses to pay after demand by the beneficiary and notice of consequential damages, the beneficiary may recover damages if the bank had notice, unless the bank proves a reasonable doubt concerning the right to payment. If the payment order instructs payment to the beneficiary’s account, the bank must notify the beneficiary of receipt of the order before midnight of the next funds-transfer business day. If notice is required by the order, the bank must notify the beneficiary. Failure to give the required notice obliges the bank to pay interest to the beneficiary. The right to receive payment and damages may not be varied by agreement or funds-transfer system rule, while the right to be notified may be varied by agreement or rule if the beneficiary is notified beforehand.
Whom does it apply to?
Beneficiary's bank
What does it govern?
Obligation of beneficiary's bank to pay and give notice to beneficiary
What are exemptions?
Sections 336.4A-211 (e), 336.4A-405 (d), and 336.4A-405 (e)
What are the Penalties?
Damages resulting from refusal to pay if the bank had notice of the damages
Jurisdiction
Minnesota