1. Unless the account agreement provides otherwise, the bank or credit union is obligated to pay a beneficiary if there are sufficient actually and finally collected funds in the balance of the special deposit.

2. Except as provided in subsection 3, the obligation to pay the beneficiary is excused if the funds available in the special deposit are insufficient to cover the payment.

3. Unless the account agreement provides otherwise, if the funds available in the special deposit are insufficient to cover an obligation to pay a beneficiary, a beneficiary may elect to be paid the funds that are available or, if there is more than one beneficiary, a pro rata share of the funds available. Payment to the beneficiary making the election under this subsection discharges the bank's or credit union's obligation to pay a beneficiary and does not constitute an accord and satisfaction with respect to another person obligated to the beneficiary.

4. Unless the account agreement provides otherwise, the obligation of the bank or credit union obligated to pay a beneficiary is immediately due and payable.

5. The bank or credit union may discharge the bank's or credit union's obligation under this section by: a. Crediting another transaction account of the beneficiary; or b. Taking other action that: (1) Is allowed under the account agreement for the bank or credit union to obtain a discharge; or (2) Otherwise would constitute a discharge under law.

6. If the bank or credit union obligated to pay a beneficiary has incurred an obligation to discharge the obligation of another person, the obligation of the other person is discharged if action by the bank or credit union under subsection 5 would constitute a

discharge of the obligation of the other person under law that determines whether an obligation is satisfied.