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-402)
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§ 4A—402. Obligation of sender to pay receiving bank
(a) This section is subject to sections 4A—205 and 4A—207 of this title.
(b) With respect to a payment order issued to the beneficiary’s bank, acceptance of the
order by the bank obliges the sender to pay the bank the amount of the order, but
payment is not due until the payment date of the order.
(c) This subsection is subject to subsection (e) of this section and to section 4A—303 of this title. With respect to a payment order issued to a receiving bank other than the beneficiary’s
bank, acceptance of the order by the receiving bank obliges the sender to pay the
bank the amount of the sender’s order. Payment by the sender is not due until the
execution date of the sender’s order. The obligation of that sender to pay its payment
order is excused if the funds transfer is not completed by acceptance by the beneficiary’s
bank of a payment order instructing payment to the beneficiary of that sender’s payment
order.
(d) If the sender of a payment order pays the order and was not obliged to pay all or
part of the amount paid, the bank receiving payment is obliged to refund payment to
the extent the sender was not obliged to pay. Except as provided in sections 4A—204 and 4A—304 of this title, interest is payable on the refundable amount from the date of payment.
(e) If a funds transfer is not completed as stated in subsection (c) of this section and
an intermediary bank is obliged to refund payment as stated in subsection (d) of this
section but is unable to do so because not permitted by applicable law or because
the bank suspends payments, a sender in the funds transfer that executed a payment
order in compliance with an instruction, as stated in subdivision 4A—302(a)(1) of this title, to route the funds transfer through that intermediary bank is entitled to receive
or retain payment from the sender of the payment order that it accepted. The first
sender in the funds transfer that issued an instruction requiring routing through
that intermediary bank is subrogated to the right of the bank that paid the intermediary
bank to refund as stated in subsection (d) of this section.
(f) The right of the sender of a payment order to be excused from the obligation to pay
the order as stated in subsection (c) of this section or to receive refund under subsection
(d) of this section may not be varied by agreement. (Added 1993, No. 158 (Adj. Sess.), § 14, eff. Jan. 1, 1995.)