California Commercial Code Section 11304
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California Laws > Commercial Code > California Commercial Code Section 11304
11304. If the sender of a payment order that is erroneously
executed as stated in Section 11303 receives notification from the
receiving bank that the order was executed or that the sender's
account was debited with respect to the order, the sender has a duty
to exercise ordinary care to determine, on the basis of information
available to the sender, that the order was erroneously executed and
to notify the bank of the relevant facts within a reasonable time not
exceeding 90 days after the notification from the bank was received
by the sender. If the sender fails to perform that duty, the bank is
not obliged to pay interest on any amount refundable to the sender
under subdivision (d) of Section 11402 for the period before the bank
learns of the execution error. The bank is not entitled to any
recovery from the sender on account of a failure by the sender to
perform the duty stated in this section.
Section: 11304
Last modified: February 22, 2013
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