TITLE 6A

Uniform Commercial Code

CHAPTER 6A-4.1

Funds Transfers

PART 6A-4.1-301

Execution of Sender's Payment Order by Receiving Bank

SECTION 6A-4.1-303



   § 6A-4.1-303  Erroneous execution of

payment order. –

(a) A receiving bank that (i) executes the payment order of the sender by

issuing a payment order in an amount greater than the amount of the sender's

order, or (ii) issues a payment order in execution of the sender's order and

then issues a duplicate order, is entitled to payment of the amount of the

sender's order under § 6A-4.1-402(c) if that subsection is otherwise

satisfied. The bank is entitled to recover from the beneficiary of the

erroneous order the excess payment received to the extent allowed by the law

governing mistake and restitution.



   (b) A receiving bank that executes the payment order of the

sender by issuing a payment order in an amount less than the amount of the

sender'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) the

bank corrects its mistake by issuing an additional payment order for the

benefit of the beneficiary of the sender's order. If the error is not

corrected, the issuer of the erroneous order is entitled to receive or retain

payment from the sender of the order it accepted only to the extent of the

amount of the erroneous order. This subsection does not apply if the receiving

bank executes the sender's payment order by issuing a payment order in an

amount less than the amount of the sender's order for the purpose of obtaining

payment of its charges for services and expenses pursuant to instruction of the

sender.



   (c) If a receiving bank executes the payment order of the

sender by issuing a payment order to a beneficiary different from the

beneficiary of the sender's order and the funds transfer is completed on the

basis of that error, the sender of the payment order that was erroneously

executed and all previous senders in the funds transfer are not obliged to pay

the payment orders they issued. The issuer of the erroneous order is entitled

to recover from the beneficiary of the order the payment received to the extent

allowed by the law governing mistake and restitution.



History of Section.

(P.L. 1991, ch. 189, § 1.)