{"data":{"id":"us-ky/krs-355.4a-402","jurisdiction":"us-ky","citation":"KRS 355.4A-402","heading":"Obligation of sender to pay receiving bank.","body":"(1) This section is subject to KRS 355.4A-205 and 355.4A-207.\n(2) With respect to a payment order issued to the beneficiary's bank, acceptance of the\norder by the bank obliges the sender to pay the bank the amount of the order, but\npayment is not due until the payment date of the order.\n(3) This subsection is subject to subsection (5) and to KRS 355.4A -303. With respect\nto a payment order issued to a receiving bank other than the beneficiary's bank,\nacceptance of the order by the receiving bank obliges the send er to pay the bank the\namount of the sender's order. Payment by the sender is not due until the execution\ndate of the sender's order. The obligation of that sender to pay its payment order is\nexcused if the funds transfer is not completed by acceptance by the beneficiary's\nbank of a payment order instructing payment to the beneficiary of that sender's\npayment order.\n(4) If the sender of a payment order pays the order and was not obliged to pay all or part\nof the amount paid, the bank receiving payment is ob liged to refund payment to the\nextent the sender was not obliged to pay. Except as provided in KRS 355.4A -204\nand 355.4A -304, interest is payable on the refundable amount from the date of\npayment.\n(5) If a funds transfer is not completed as stated in subse ction (3) and an intermediary\nbank is obliged to refund payment as stated in subsection (4) but is unable to do so\nbecause not permitted by applicable law or because the bank suspends payments, a\nsender in the funds transfer that executed a payment order i n compliance with an\ninstruction, as stated in KRS 355.4A -302(1)(a), to route the funds transfer through\nthat intermediary bank is entitled to receive or retain payment from the sender of the\npayment order that it accepted. The first sender in the funds tr ansfer that issued an\ninstruction requiring routing through that intermediary bank is subrogated to the\nright of the bank that paid the intermediary bank to refund as stated in subsection\n(4).\n(6) The right of the sender of a payment order to be excused fr om the obligation to pay\nthe order as stated in subsection (3) or to receive refund under subsection (4) may\nnot be varied by agreement.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33581","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:45Z","sha256":"30657e649ada8c0a7526204038a1783a580e489a7e67840a380b42f4cede5f2f","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.4a-401","next":"us-ky/krs-355.4a-403"},"notice":"GroundRules: Original legal text. Not legal advice."}