47-4A303. Erroneous execution of payment
order


A. A receiving bank that executes the payment order of the sender by issuing a
payment order in an amount greater than the amount of the sender's order, or issues a
payment order in execution of the sender's order and then issues a duplicate order, is
entitled to payment of the amount of the sender's order under section 47-4A402,
subsection C if that subsection is otherwise satisfied. The bank is entitled to recover
from the beneficiary of the erroneous order the excess payment received to the extent
allowed by the law governing mistake and restitution.


B. A receiving bank that executes the payment order of the sender by issuing a
payment order in an amount less than the amount of the sender's order is entitled to
payment of the amount of the sender's order under section 47-4A402, subsection C if that
subsection is otherwise satisfied and the bank corrects its mistake by issuing an
additional payment order for the benefit of the beneficiary of the sender's order. If
the error is not corrected, the issuer of the erroneous order is entitled to receive or
retain payment from the sender of the order it accepted only to the extent of the amount
of the erroneous order. This subsection does not apply if the receiving bank executes
the sender's payment order by issuing a payment order in an amount less than the amount
of the sender's order for the purpose of obtaining payment of its charges for services
and expenses pursuant to instruction of the sender.


C. If a receiving bank executes the payment order of the sender by issuing a
payment order to a beneficiary different from the beneficiary of the sender's order and
the funds transfer is completed on the basis of that error, the sender of the payment
order that was erroneously executed and all previous senders in the funds transfer are
not obliged to pay the payment orders they issued. The issuer of the erroneous order is
entitled to recover from the beneficiary of the order the payment received to the extent
allowed by the law governing mistake and restitution.