N.Y. UCC Law § 4-A-406

Section 4-A-406. Payment by Originator to Beneficiary; Discharge of\n Underlying Obligation.\n (1) Subject to subsection (5) of Section 4-A-211 and subsections (4)\nand (5) of Section 4-A-405, the originator of a funds transfer pays the\nbeneficiary of the originator's payment order (i) at the time a payment\norder for the benefit of the beneficiary is accepted by the\nbeneficiary's bank in the funds transfer and (ii) in an amount equal to\nthe amount of the order accepted by the beneficiary's bank, but not more\nthan the amount of the originator's order.\n (2) If payment under subsection (1) is made to satisfy an obligation,\nthe obligation is discharged to the same extent discharge would result\nfrom payment to the beneficiary of the same amount in money, unless (i)\nthe payment under subsection (1) was made by a means prohibited by the\ncontract of the beneficiary with respect to the obligation, (ii) the\nbeneficiary, within a reasonable time after receiving notice of receipt\nof the order by the beneficiary's bank, notified the originator of the\nbeneficiary's refusal of the payment, (iii) funds with respect to the\norder were not withdrawn by the beneficiary or applied to a debt of the\nbeneficiary, and (iv) the beneficiary would suffer a loss that could\nreasonably have been avoided if payment had been made by a means\ncomplying with the contract. If payment by the originator does not\nresult in discharge under this section, the originator is subrogated to\nthe rights of the beneficiary to receive payment from the beneficiary's\nbank under subsection (1) of Section 4-A-404.\n (3) For the purpose of determining whether discharge of an obligation\noccurs under subsection (2), if the beneficiary's bank accepts a payment\norder in an amount equal to the amount of the originator's payment order\nless charges of one or more receiving banks in the funds transfer,\npayment to the beneficiary is deemed to be in the amount of the\noriginator's order unless upon demand by the beneficiary the originator\ndoes not pay the beneficiary the amount of the deducted charges.\n (4) Rights of the originator or of the beneficiary of a funds transfer\nunder this section may be varied only by agreement of the originator and\nthe beneficiary.\n