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Can you summarize MNST 336.4A-406?
UNIFORM COMMERCIAL CODE > PAYMENT BY ORIGINATOR TO BENEFICIARY; DISCHARGE OF UNDERLYING OBLIGATION.
Short Summary
This legal document, governed by the Minnesota Statutes under the Uniform Commercial Code, pertains to the payment by the originator to the beneficiary in a funds transfer and the discharge of the underlying obligation. The originator is required to pay the beneficiary at the time the payment order is accepted by the beneficiary’s bank, in an amount equal to or less than the originator’s order. If payment is made to satisfy an obligation, the obligation is discharged unless certain conditions are met. The originator may be subrogated to the rights of the beneficiary if payment does not result in discharge. The document also specifies that the amount paid to the beneficiary is deemed to be the originator’s order amount, unless the beneficiary demands the deducted charges. The rights of the originator and beneficiary can only be varied by their agreement. No specific exemptions or penalties are mentioned in this document.
Whom does it apply to?
Originators and beneficiaries of funds transfers
What does it govern?
Payment by originator to beneficiary; discharge of underlying obligation
What are exemptions?
None mentioned
What are the Penalties?
None mentioned
Jurisdiction
Minnesota