§490:4A-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 section 490:4A-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 section 490:4A-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. [L 1991, c 41, pt of §1]