2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 3 - Execution of Sender's Payment Order by Receiving Bank › 4-A-302 - Obligations of Receiving Bank in Execution of Payment Order.

Section 4-A-302. Obligations  of  Receiving Bank in Execution of Payment
Order.
(1) Except  as  provided  in  subsections  (2)  through  (4);  if  the
receiving  bank  accepts  a  payment order pursuant to subsection (1) of
Section 4-A-209, the bank has the following obligations in executing the
order:
(a) 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.
(b) 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.
(2)  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.
(3)  Unless  paragraph  (b) of subsection (1) 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.
(4)  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.