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Can you summarize NHRS 382-A:4A-404?
UNIFORM COMMERCIAL CODE > Obligation of Beneficiary's Bank to Pay and Give Notice to Beneficiary.
Short Summary
This legal provision, found in the New Hampshire Revised Statutes under the Uniform Commercial Code, outlines the obligations of a beneficiary’s bank regarding payment and notice to the beneficiary. If a beneficiary’s bank accepts a payment order, it is required to pay the amount of the order to the beneficiary on the payment date. However, if acceptance occurs after the close of the bank’s funds-transfer business day, payment is due on the next 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 of the damages, unless the bank proves reasonable doubt concerning the right to payment. Additionally, if the payment order instructs payment to the beneficiary’s account, the bank must notify the beneficiary of receipt of the order by the next funds-transfer business day. Failure to provide the required notice obliges the bank to pay interest to the beneficiary. The right to receive payment and damages cannot be varied by agreement or funds-transfer system rule, while the right to be notified may be varied if the beneficiary is informed of the rule before the funds transfer is initiated.
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 4A-211(e), 4A-405(d), and 4A-405(e)
What are the Penalties?
Damages resulting from refusal to pay, unless the bank proves reasonable doubt concerning the right of the beneficiary to payment
Jurisdiction
New Hampshire