State Codes and Statutes
Statutes > North-carolina > Chapter_25 > GS_25-4A-303§25‑4A‑303. Erroneous execution of payment order.
(a) A receiving bankthat (i) executes the payment order of the sender by issuing a payment order inan amount greater than the amount of the sender's order, or (ii) issues apayment order in execution of the sender's order and then issues a duplicateorder, is entitled to payment of the amount of the sender's order under G.S. 25‑4A‑402(c)if that subsection is otherwise satisfied. The bank is entitled to recoverfrom the beneficiary of the erroneous order the excess payment received to theextent allowed by the law governing mistake and restitution.
(b) A receiving bankthat executes the payment order of the sender by issuing a payment order in anamount less than the amount of the sender's order is entitled to payment of theamount of the sender's order under G.S. 25‑4A‑402(c) if (i) thatsubsection is otherwise satisfied and (ii) the bank corrects its mistake byissuing an additional payment order for the benefit of the beneficiary of thesender's order. If the error is not corrected, the issuer of the erroneousorder is entitled to receive or retain payment from the sender of the order itaccepted only to the extent of the amount of the erroneous order. Thissubsection does not apply if the receiving bank executes the sender's paymentorder by issuing a payment order in an amount less than the amount of thesender's order for the purpose of obtaining payment of its charges for servicesand expenses pursuant to instruction of the sender.
(c) If a receiving bankexecutes the payment order of the sender by issuing a payment order to abeneficiary different from the beneficiary of the sender's order and the fundstransfer is completed on the basis of that error, the sender of the paymentorder that was erroneously executed and all previous senders in the fundstransfer are not obliged to pay the payment orders they issued. The issuer ofthe erroneous order is entitled to recover from the beneficiary of the orderthe payment received to the extent allowed by the law governing mistake andrestitution. (1993, c. 157, s. 1.)
