State Codes and Statutes
Statutes > Virginia > Title-8-4a > Part-3 > 8-4a-303§ 8.4A-303. Erroneous execution of payment 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 subsection (c) of § 8.4A-402 if that subsection isotherwise satisfied. The bank is entitled to recover from the beneficiary ofthe erroneous order the excess payment received to the extent allowed by thelaw governing mistake and restitution.
(b) A receiving bank that executes the payment order of the sender by issuinga payment order in an amount less than the amount of the sender's order isentitled to a payment of the amount of the sender's order under subsection(c) of § 8.4A-402 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 thereceiving bank executes the sender's payment order by issuing a payment orderin an amount less than the amount of the sender's order for the purpose ofobtaining payment of its charges for services and expenses pursuant toinstruction of the sender.
(c) If a receiving bank executes the payment order of the sender by issuing apayment order to a beneficiary different from the beneficiary of the sender'sorder and the funds transfer is completed on the basis of that error, thesender of the payment order that was erroneously executed and all previoussenders in the funds transfer are not obliged to pay the payment orders theyissued. The issuer of the erroneous order is entitled to recover from thebeneficiary of the order the payment received to the extent allowed by thelaw governing mistake and restitution.
(1990, c. 9.)
