§4-1203. Unenforceability of certain verified payment orders








(1). 
 
If an accepted payment order is not under section 4-1202, subsection (1) an authorized
order of a customer identified as sender but is effective as an order of the customer
pursuant to section 4-1202, subsection (2), the following rules apply.





(a). By express written agreement, the receiving bank may limit the extent to which it
is entitled to enforce or retain payment of the payment order. [1991, c. 812, §2 (NEW).]










(b). The receiving bank is not entitled to enforce or retain payment of the payment order
if the customer proves that the order was not caused, directly or indirectly, by a
person:



(i) Entrusted at any time with duties to act for the customer with respect to payment
orders or the security procedure or who obtained access to transmitting facilities
of the customer; or






(ii) Who obtained from a source controlled by the customer and without authority
of the receiving bank information facilitating breach of the security procedure, regardless
of how the information was obtained or whether the customer was at fault. Information
includes any access device, computer software or the like. [1991, c. 812, §2 (NEW).]










[
1991, c. 812, §2 (NEW)
.]








(2). 
 
This section applies to amendments of payment orders to the same extent it applies
to payment orders.


[
1991, c. 812, §2 (NEW)
.]





SECTION HISTORY

1991, c. 812, §2 (NEW).