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Texas Business & Commerce Code - Section 4A.203. Unenforceability Of Certain Verified Payment Orders

Legal Research Home > Texas Lawyer > Business & Commerce Code > Texas Business & Commerce Code - Section 4A.203. Unenforceability Of Certain Verified Payment Orders

§ 4A.203. UNENFORCEABILITY OF CERTAIN VERIFIED PAYMENT 
ORDERS.  (a) If an accepted payment order is not, under Section 
4A.202(a), an authorized order of a customer identified as sender, 
but is effective as an order of the customer pursuant to Section 
4A.202(b), the following rules apply:
		(1)  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.
		(2)  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:
			(A)  entrusted at any time with duties to act for 
the customer with respect to payment orders or the security 
procedure;  or
			(B)  who obtained access to transmitting 
facilities of the customer or 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.
	(b)  This section applies to amendments of payment orders to 
the same extent it applies to payment orders.

Added by Acts 1993, 73rd Leg., ch. 570, § 7, eff. Sept. 1, 1993.           

Last modified: August 10, 2007