8-3207.

Payment to beneficiary by financial institution.

(a) Unless the account agreement provides otherwise, the financial institution 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), the obligation to pay the beneficiary is excused if the funds available in the special deposit are insufficient to cover such payment.

(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 financial institution'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 financial institution obligated to pay a beneficiary is immediately due and payable.

(e) The financial institution may discharge its obligation under this section by:

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

(2) taking other action that:

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

(ii) otherwise would constitute a discharge under law.

(f) If the financial institution 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 financial institution under subsection (e) would constitute a discharge of the obligation of the other person under law that determines whether an obligation is satisfied.