§ 6A-4.1-205 Erroneous payment orders.– (a) If an accepted payment order was transmitted pursuant to a securityprocedure for the detection of error and the payment order (i) erroneouslyinstructed payment to a beneficiary not intended by the sender, (ii)erroneously instructed payment in an amount greater than the amount intended bythe sender, or (iii) was an erroneously transmitted duplicate of a paymentorder previously sent by the sender, the following rules apply:
(1) If the sender proves that the sender or a person actingon behalf of the sender pursuant to § 6A-4.1-206 complied with thesecurity procedure and that the error would have been detected if the receivingbank had also complied, the sender is not obliged to pay the order to theextent stated in subsections (a)(2) and (a)(3).
(2) If the funds transfer is completed on the basis of anerroneous payment order described in clause (i) or (iii) of subsection (a), thesender is not obliged to pay the order and the receiving bank is entitled torecover from the beneficiary any amount paid to the beneficiary to the extentallowed by the law governing mistake and restitution.
(3) If the funds transfer is completed on the basis of apayment order described in clause (ii) of subsection (a), the sender is notobliged to pay the order to the extent the amount received by the beneficiaryis greater than the amount intended by the sender. In that case, the receivingbank is entitled to recover from the beneficiary the excess amount received tothe extent allowed by the law governing mistake and restitution.
(b) If (i) the sender of an erroneous payment order describedin subsection (a) is not obliged to pay all or part of the order, and (ii) thesender receives notification from the receiving bank that the order wasaccepted by the bank or that the sender's account was debited with respect tothe order, the sender has a duty to exercise ordinary care, on the basis ofinformation available to the sender, to discover the error with respect to theorder and to advise the bank of the relevant facts within a reasonable time,not exceeding ninety (90) days, after the bank's notification was received bythe sender. If the bank proves that the sender failed to perform that duty, thesender is liable to the bank for the loss the bank proves it incurred as aresult of the failure, but the liability of the sender may not exceed theamount of the sender's order.
(c) This section applies to amendments to payment orders tothe same extent it applies to payment orders.
§ 6A-4.1-205 Erroneous payment orders.– (a) If an accepted payment order was transmitted pursuant to a securityprocedure for the detection of error and the payment order (i) erroneouslyinstructed payment to a beneficiary not intended by the sender, (ii)erroneously instructed payment in an amount greater than the amount intended bythe sender, or (iii) was an erroneously transmitted duplicate of a paymentorder previously sent by the sender, the following rules apply:
(1) If the sender proves that the sender or a person actingon behalf of the sender pursuant to § 6A-4.1-206 complied with thesecurity procedure and that the error would have been detected if the receivingbank had also complied, the sender is not obliged to pay the order to theextent stated in subsections (a)(2) and (a)(3).
(2) If the funds transfer is completed on the basis of anerroneous payment order described in clause (i) or (iii) of subsection (a), thesender is not obliged to pay the order and the receiving bank is entitled torecover from the beneficiary any amount paid to the beneficiary to the extentallowed by the law governing mistake and restitution.
(3) If the funds transfer is completed on the basis of apayment order described in clause (ii) of subsection (a), the sender is notobliged to pay the order to the extent the amount received by the beneficiaryis greater than the amount intended by the sender. In that case, the receivingbank is entitled to recover from the beneficiary the excess amount received tothe extent allowed by the law governing mistake and restitution.
(b) If (i) the sender of an erroneous payment order describedin subsection (a) is not obliged to pay all or part of the order, and (ii) thesender receives notification from the receiving bank that the order wasaccepted by the bank or that the sender's account was debited with respect tothe order, the sender has a duty to exercise ordinary care, on the basis ofinformation available to the sender, to discover the error with respect to theorder and to advise the bank of the relevant facts within a reasonable time,not exceeding ninety (90) days, after the bank's notification was received bythe sender. If the bank proves that the sender failed to perform that duty, thesender is liable to the bank for the loss the bank proves it incurred as aresult of the failure, but the liability of the sender may not exceed theamount of the sender's order.
(c) This section applies to amendments to payment orders tothe same extent it applies to payment orders.
§ 6A-4.1-205 Erroneous payment orders.– (a) If an accepted payment order was transmitted pursuant to a securityprocedure for the detection of error and the payment order (i) erroneouslyinstructed payment to a beneficiary not intended by the sender, (ii)erroneously instructed payment in an amount greater than the amount intended bythe sender, or (iii) was an erroneously transmitted duplicate of a paymentorder previously sent by the sender, the following rules apply:
(1) If the sender proves that the sender or a person actingon behalf of the sender pursuant to § 6A-4.1-206 complied with thesecurity procedure and that the error would have been detected if the receivingbank had also complied, the sender is not obliged to pay the order to theextent stated in subsections (a)(2) and (a)(3).
(2) If the funds transfer is completed on the basis of anerroneous payment order described in clause (i) or (iii) of subsection (a), thesender is not obliged to pay the order and the receiving bank is entitled torecover from the beneficiary any amount paid to the beneficiary to the extentallowed by the law governing mistake and restitution.
(3) If the funds transfer is completed on the basis of apayment order described in clause (ii) of subsection (a), the sender is notobliged to pay the order to the extent the amount received by the beneficiaryis greater than the amount intended by the sender. In that case, the receivingbank is entitled to recover from the beneficiary the excess amount received tothe extent allowed by the law governing mistake and restitution.
(b) If (i) the sender of an erroneous payment order describedin subsection (a) is not obliged to pay all or part of the order, and (ii) thesender receives notification from the receiving bank that the order wasaccepted by the bank or that the sender's account was debited with respect tothe order, the sender has a duty to exercise ordinary care, on the basis ofinformation available to the sender, to discover the error with respect to theorder and to advise the bank of the relevant facts within a reasonable time,not exceeding ninety (90) days, after the bank's notification was received bythe sender. If the bank proves that the sender failed to perform that duty, thesender is liable to the bank for the loss the bank proves it incurred as aresult of the failure, but the liability of the sender may not exceed theamount of the sender's order.
(c) This section applies to amendments to payment orders tothe same extent it applies to payment orders.
