- A. Unless the account agreement provides otherwise, the bank is obligated to pay a beneficiary if there are sufficient actually and finally collected funds in the balance of the special deposit.
- B. Except as provided in subsection C of this section, the obligation to pay the beneficiary is excused if the funds available in the special deposit are insufficient to cover such payment.
- C. 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 obligation to pay a beneficiary and does not constitute an accord and satisfaction with respect to another person obligated to the beneficiary.
- D. Unless the account agreement provides otherwise, the obligation of the bank obligated to pay a beneficiary is immediately due and payable.
E. The bank may discharge its obligation under this section by:
- 1. Crediting another transaction account of the beneficiary; or
2. Taking other action that:
- a. is permitted under the account agreement for the bank to obtain a discharge, or
- b. otherwise would constitute a discharge under law.
- F. If the bank obligated to pay a beneficiary has incurred an obligation to discharge that obligation of another person, the obligation of the other person is discharged if action by the bank under subsection E of this section would constitute a discharge of the obligation of the other person under law that determined whether an obligation is satisfied.
Laws 2024, SB 1819, c. 174, § 7, eff. November 1, 2024.