Arizona Arizona Revised Statutes
§ 6-257 — Payment to beneficiary by bank
ARS § 6-257Title 6. Banks and Financial Institutions · Ch. 2. BANK ORGANIZATION AND REGULATION · Art. 5.1. Special Deposits
Statute text
View on source6-257. Payment to beneficiary by bank A. Unless the account agreement states 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. B. Except as provided in subsection C of this section, the obligation to pay the beneficiary is excused if the funds available in the special deposit are insufficient to cover such payments. C. 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. D. Unless the account agreement provides otherwise, the obligation of the bank obligated to pay a beneficiary is immediately due and payable. E. The bank may discharge its obligation under this section by: 1. Crediting another transaction account of the beneficiary; or 2. Taking other action that:
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