(a) If an acceptedpayment order was transmitted pursuant to a security procedure for thedetection of error and the payment order (i) erroneously instructed payment toa beneficiary not intended by the sender, (ii) erroneously instructed paymentin an amount greater than the amount intended by the sender, or (iii) was anerroneously transmitted duplicate of a payment order previously sent by thesender, the following rules apply:
(1) If the sender provesthat the sender or a person acting on behalf of the sender pursuant to G.S. 25‑4A‑206complied with the security procedure and that the error would have beendetected if the receiving bank had also complied, the sender is not obliged topay the order to the extent stated in paragraphs (2) and (3).
(2) If the fundstransfer is completed on the basis of an erroneous payment order described inclause (i) or (iii) of subsection (a), the sender is not obliged to pay theorder and the receiving bank is entitled to recover from the beneficiary anyamount paid to the beneficiary to the extent allowed by the law governingmistake and restitution.
(3) If the fundstransfer is completed on the basis of a payment order described in clause (ii)of subsection (a), the sender is not obliged to pay the order to the extent theamount received by the beneficiary is greater than the amount intended by thesender. In that case, the receiving bank is entitled to recover from thebeneficiary the excess amount received to the extent allowed by the lawgoverning mistake and restitution.
(b) If (i) the senderof an erroneous payment order described in subsection (a) is not obliged to payall or part of the order, and (ii) the sender receives notification from thereceiving bank that the order was accepted by the bank or that the sender'saccount was debited with respect to the order, the sender has a duty toexercise ordinary care, on the basis of information available to the sender, todiscover the error with respect to the order and to advise the bank of therelevant facts within a reasonable time, not exceeding 90 days, after thebank's notification was received by the sender. If the bank proves that thesender failed to perform that duty, the sender is liable to the bank for theloss the bank proves it incurred as a result of the failure, but the liabilityof the sender may not exceed the amount of the sender's order.
(c) This sectionapplies to amendments to payment orders to the same extent it applies topayment orders. (1993, c. 157, s. 1.)
(a) If an acceptedpayment order was transmitted pursuant to a security procedure for thedetection of error and the payment order (i) erroneously instructed payment toa beneficiary not intended by the sender, (ii) erroneously instructed paymentin an amount greater than the amount intended by the sender, or (iii) was anerroneously transmitted duplicate of a payment order previously sent by thesender, the following rules apply:
(1) If the sender provesthat the sender or a person acting on behalf of the sender pursuant to G.S. 25‑4A‑206complied with the security procedure and that the error would have beendetected if the receiving bank had also complied, the sender is not obliged topay the order to the extent stated in paragraphs (2) and (3).
(2) If the fundstransfer is completed on the basis of an erroneous payment order described inclause (i) or (iii) of subsection (a), the sender is not obliged to pay theorder and the receiving bank is entitled to recover from the beneficiary anyamount paid to the beneficiary to the extent allowed by the law governingmistake and restitution.
(3) If the fundstransfer is completed on the basis of a payment order described in clause (ii)of subsection (a), the sender is not obliged to pay the order to the extent theamount received by the beneficiary is greater than the amount intended by thesender. In that case, the receiving bank is entitled to recover from thebeneficiary the excess amount received to the extent allowed by the lawgoverning mistake and restitution.
(b) If (i) the senderof an erroneous payment order described in subsection (a) is not obliged to payall or part of the order, and (ii) the sender receives notification from thereceiving bank that the order was accepted by the bank or that the sender'saccount was debited with respect to the order, the sender has a duty toexercise ordinary care, on the basis of information available to the sender, todiscover the error with respect to the order and to advise the bank of therelevant facts within a reasonable time, not exceeding 90 days, after thebank's notification was received by the sender. If the bank proves that thesender failed to perform that duty, the sender is liable to the bank for theloss the bank proves it incurred as a result of the failure, but the liabilityof the sender may not exceed the amount of the sender's order.
(c) This sectionapplies to amendments to payment orders to the same extent it applies topayment orders. (1993, c. 157, s. 1.)
(a) If an acceptedpayment order was transmitted pursuant to a security procedure for thedetection of error and the payment order (i) erroneously instructed payment toa beneficiary not intended by the sender, (ii) erroneously instructed paymentin an amount greater than the amount intended by the sender, or (iii) was anerroneously transmitted duplicate of a payment order previously sent by thesender, the following rules apply:
(1) If the sender provesthat the sender or a person acting on behalf of the sender pursuant to G.S. 25‑4A‑206complied with the security procedure and that the error would have beendetected if the receiving bank had also complied, the sender is not obliged topay the order to the extent stated in paragraphs (2) and (3).
(2) If the fundstransfer is completed on the basis of an erroneous payment order described inclause (i) or (iii) of subsection (a), the sender is not obliged to pay theorder and the receiving bank is entitled to recover from the beneficiary anyamount paid to the beneficiary to the extent allowed by the law governingmistake and restitution.
(3) If the fundstransfer is completed on the basis of a payment order described in clause (ii)of subsection (a), the sender is not obliged to pay the order to the extent theamount received by the beneficiary is greater than the amount intended by thesender. In that case, the receiving bank is entitled to recover from thebeneficiary the excess amount received to the extent allowed by the lawgoverning mistake and restitution.
(b) If (i) the senderof an erroneous payment order described in subsection (a) is not obliged to payall or part of the order, and (ii) the sender receives notification from thereceiving bank that the order was accepted by the bank or that the sender'saccount was debited with respect to the order, the sender has a duty toexercise ordinary care, on the basis of information available to the sender, todiscover the error with respect to the order and to advise the bank of therelevant facts within a reasonable time, not exceeding 90 days, after thebank's notification was received by the sender. If the bank proves that thesender failed to perform that duty, the sender is liable to the bank for theloss the bank proves it incurred as a result of the failure, but the liabilityof the sender may not exceed the amount of the sender's order.
(c) This sectionapplies to amendments to payment orders to the same extent it applies topayment orders. (1993, c. 157, s. 1.)
