Legislation

* § 680-f. Payment to beneficiary by bank. 1. 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.

2. Except as provided in subdivision three 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.

3. 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.

4. Unless the account agreement provides otherwise, the obligation of
the bank obligated to pay a beneficiary is immediately due and payable.

5. The bank may discharge its obligation under this section by:

(a) crediting another transaction account of the beneficiary; or

(b) taking other action that:

(i) is permitted under the account agreement for the bank to obtain a
discharge; or

(ii) otherwise would constitute a discharge under law.

6. If the bank obligated to pay a beneficiary has incurred an
obligation to discharge the obligation of another person, the obligation
of the other person is discharged if action by the bank under
subdivision five of this section would constitute a discharge of the
obligation of the other person under law that determines whether an
obligation is satisfied.

* NB Effective January 1, 2026