Texas Business & Commerce Code - Section 4A.303. Erroneous Execution Of Payment Order
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Texas Lawyer > Business & Commerce Code > Texas Business & Commerce Code - Section 4A.303. Erroneous Execution Of Payment Order
§ 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 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 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.
Added by Acts 1993, 73rd Leg., ch. 570, § 7, eff. Sept. 1, 1993.
Section: 4A.208 4A.209 4A.210 4A.211 4A.212 4A.301 4A.302 4A.303 4A.304 4A.305 4A.401 4A.402 4A.403 4A.404 4A.405
Last modified: August 10, 2007
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