State Codes and Statutes
Statutes > Rhode-island > Title-6a > Chapter-6a-4-1 > 6a-4-1-303SECTION 6A-4.1-303
§ 6A-4.1-303 Erroneous execution ofpayment order. – (a) A receiving bank that (i) executes the payment order of the sender byissuing a payment order in an amount greater than the amount of the sender'sorder, or (ii) issues a payment order in execution of the sender's order andthen issues a duplicate order, is entitled to payment of the amount of thesender's order under § 6A-4.1-402(c) if that subsection is otherwisesatisfied. The bank is entitled to recover from the beneficiary of theerroneous order the excess payment received to the extent allowed by the lawgoverning mistake and restitution.
(b) A receiving bank that executes the payment order of thesender by issuing a payment order in an amount less than the amount of thesender's order is entitled to payment of the amount of the sender's order under§ 6A-4.1-402(c) if (i) that subsection is otherwise satisfied and (ii) thebank corrects its mistake by issuing an additional payment order for thebenefit of the beneficiary of the sender's order. If the error is notcorrected, the issuer of the erroneous order is entitled to receive or retainpayment from the sender of the order it accepted only to the extent of theamount of the erroneous order. This subsection does not apply if the receivingbank executes the sender's payment order by issuing a payment order in anamount less than the amount of the sender's order for the purpose of obtainingpayment of its charges for services and expenses pursuant to instruction of thesender.
(c) If a receiving bank executes the payment order of thesender by issuing a payment order to a beneficiary different from thebeneficiary of the sender's order and the funds transfer is completed on thebasis of that error, the sender of the payment order that was erroneouslyexecuted and all previous senders in the funds transfer are not obliged to paythe payment orders they issued. The issuer of the erroneous order is entitledto recover from the beneficiary of the order the payment received to the extentallowed by the law governing mistake and restitution.
