State Codes and Statutes
Statutes > Rhode-island > Title-6a > Chapter-6a-4-1 > 6a-4-1-203SECTION 6A-4.1-203
§ 6A-4.1-203 Unenforceability of certainverified payment orders. – (a) If an accepted payment order is not, under § 6A-4.1-202(a), anauthorized order of a customer identified as sender, but is effective as anorder of the customer pursuant to § 6A-4.1-202(b), the following rulesapply:
(1) By express written agreement, the receiving bank maylimit the extent to which it is entitled to enforce or retain payment of thepayment order.
(2) The receiving bank is not entitled to enforce or retainpayment of the payment order if the customer proves that the order was notcaused, directly or indirectly, by a person (i) entrusted at any time withduties to act for the customer with respect to payment orders or the securityprocedure, or (ii) who obtained access to transmitting facilities of thecustomer or who obtained, from a source controlled by the customer and withoutauthority of the receiving bank, information facilitating breach of thesecurity procedures, regardless of how the information was obtained or whetherthe customer was at fault. Information includes any access device, computersoftware, or the like.
(b) This section applies to amendments of payment orders tothe same extent it applies to payment orders.
