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-406)
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§ 4A—406. Payment by originator to beneficiary; discharge of underlying obligation
(a) Subject to subsections 4A—211(e), 4A—405(d), and 4A—405(e) of this title, the originator of a funds transfer pays the beneficiary of the originator’s payment
order (i) at the time a payment order for the benefit of the beneficiary is accepted
by the beneficiary’s bank in the funds transfer and (ii) in an amount equal to the
amount of the order accepted by the beneficiary’s bank, but not more than the amount
of the originator’s order.
(b) If payment under subsection (a) of this section is made to satisfy an obligation,
the obligation is discharged to the same extent discharge would result from payment
to the beneficiary of the same amount in money, unless (i) the payment under subsection
(a) of this section was made by a means prohibited by the contract of the beneficiary
with respect to the obligation, (ii) the beneficiary, within a reasonable time after
receiving notice of receipt of the order by the beneficiary’s bank, notified the originator
of the beneficiary’s refusal of the payment, (iii) funds with respect to the order
were not withdrawn by the beneficiary or applied to a debt of the beneficiary, and
(iv) the beneficiary would suffer a loss that could reasonably have been avoided if
payment had been made by a means complying with the contract. If payment by the originator
does not result in discharge under this section, the originator is subrogated to the
rights of the beneficiary to receive payment from the beneficiary’s bank under subsection 4A—404(a) of this title.
(c) For the purpose of determining whether discharge of an obligation occurs under subsection
(b) of this section, if the beneficiary’s bank accepts a payment order in an amount
equal to the amount of the originator’s payment order less charges of one or more
receiving banks in the funds transfer, payment to the beneficiary is deemed to be
in the amount of the originator’s order unless upon demand by the beneficiary the
originator does not pay the beneficiary the amount of the deducted charges.
(d) Rights of the originator or of the beneficiary of a funds transfer under this section
may be varied only by agreement of the originator and the beneficiary. (Added 1993, No. 158 (Adj. Sess.), § 14, eff. Jan. 1, 1995.)