The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 9A V.S.A. § 4A-302)
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§ 4A—302. Obligations of receiving bank in execution of payment order
(a) Except as provided in subsections (b) through (d) of this section, if the receiving
bank accepts a payment order pursuant to subsection 4A—209(a) of this title, the bank has the following obligations in executing the order:
(1) The receiving bank is obliged to issue, on the execution date, a payment order complying
with the sender’s order and to follow the sender’s instructions concerning (i) any
intermediary bank or funds-transfer system to be used in carrying out the funds transfer,
or (ii) the means by which payment orders are to be transmitted in the funds transfer.
If the originator’s bank issues a payment order to an intermediary bank, the originator’s
bank is obliged to instruct the intermediary bank according to the instruction of
the originator. An intermediary bank in the funds transfer is similarly bound by an
instruction given to it by the sender of the payment order it accepts.
(2) If the sender’s instruction states that the funds transfer is to be carried out telephonically
or by wire transfer or otherwise indicates that the funds transfer is to be carried
out by the most expeditious means, the receiving bank is obliged to transmit its payment
order by the most expeditious available means, and to instruct any intermediary bank
accordingly. If a sender’s instruction states a payment date, the receiving bank is
obliged to transmit its payment order at a time and by means reasonably necessary
to allow payment to the beneficiary on the payment date or as soon thereafter as is
feasible.
(b) Unless otherwise instructed, a receiving bank executing a payment order may (i) use
any funds-transfer system if use of that system is reasonable in the circumstances,
and (ii) issue a payment order to the beneficiary’s bank or to an intermediary bank
through which a payment order conforming to the sender’s order can expeditiously be
issued to the beneficiary’s bank if the receiving bank exercises ordinary care in
the selection of the intermediary bank. A receiving bank is not required to follow
an instruction of the sender designating a funds-transfer system to be used in carrying
out the funds transfer if the receiving bank, in good faith, determines that it is
not feasible to follow the instruction or that following the instruction would unduly
delay completion of the funds transfer.
(c) Unless subdivision (a)(2) of this section applies or the receiving bank is otherwise
instructed, the bank may execute a payment order by transmitting its payment order
by first class mail or by any means reasonable in the circumstances. If the receiving
bank is instructed to execute the sender’s order by transmitting its payment order
by a particular means, the receiving bank may issue its payment order by the means
stated or by any means as expeditious as the means stated.
(d) Unless instructed by the sender, (i) the receiving bank may not obtain payment of
its charges for services and expenses in connection with the execution of the sender’s
order by issuing a payment order in an amount equal to the amount of the sender’s
order less the amount of the charges, and (ii) may not instruct a subsequent receiving
bank to obtain payment of its charges in the same manner. (Added 1993, No. 158 (Adj. Sess.), § 14, eff. Jan. 1, 1995.)