(4A-405) Payment by beneficiary's bank to beneficiary
N.D. Cent. Code § 41-04.1-30
in effect41-04.1-30. (4A-405) Payment by beneficiary's bank to beneficiary
1. If the beneficiary's bank credits an account of the beneficiary of a payment order,
payment of the bank's obligation under subsection 1 of section 41-04.1-29 occurs
when and to the extent the beneficiary is notified of the right to withdraw the credit, the
bank lawfully applies the credit to a debt of the beneficiary, or funds with respect to the
order are otherwise made available to the beneficiary by the bank.
2. If the beneficiary's bank does not credit an account of the beneficiary of a payment
order, the time when payment of the bank's obligation under subsection 1 of section
41-04.1-29 occurs is governed by principles of law that determine when an obligation
is satisfied.
3. Except as stated in subsections 4 and 5, if the beneficiary's bank pays the beneficiary
of a payment order under a condition to payment or agreement of the beneficiary
giving the bank the right to recover payment from the beneficiary if the bank does not
receive payment of the order, the condition to payment or agreement is not
enforceable.
4. A funds-transfer system rule may provide that payments made to beneficiaries of funds
transfers made through the system are provisional until receipt of payment by the
beneficiary's bank of the payment order it accepted. A beneficiary's bank that makes a
payment that is provisional under the rule is entitled to refund from the beneficiary if
the rule requires that both the beneficiary and the originator be given notice of the
provisional nature of the payment before the funds transfer is initiated, the beneficiary,
the beneficiary's bank and the originator's bank agreed to be bound by the rule, and
the beneficiary's bank did not receive payment of the payment order that it accepted. If
the beneficiary is obliged to refund payment to the beneficiary's bank, acceptance of
the payment order by the beneficiary's bank is nullified and no payment by the
originator of the funds transfer to the beneficiary occurs under section 41-04.1-31.
5. This subsection applies to a funds transfer that includes a payment order transmitted
over a funds-transfer system that nets obligations multilaterally among participants and
has in effect a loss-sharing agreement among participants for the purpose of providing
funds necessary to complete settlement of the obligations of one or more participants
that do not meet their settlement obligations. If the beneficiary's bank in the funds
transfer accepts a payment order and the system fails to complete settlement under its
rules with respect to any payment order in the funds transfer, the acceptance by the
beneficiary's bank is nullified and no person has any right or obligation based on the
acceptance; the beneficiary's bank is entitled to recover payment from the beneficiary;
no payment by the originator to the beneficiary occurs under section 41-04.1-31; and
subject to subsection 5 of section 41-04.1-27, each sender in the funds transfer is
excused from its obligation to pay its payment order under subsection 3 of section
41-04.1-27 because the funds transfer has not been completed.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t41c04-1.pdf#nameddest=41-04p1-30Fetched: 10/16/2026