Texas Business & Commerce Code - Section 4A.304. Duty Of Sender To Report Erroneously Executed Payment Order
Legal Research Home >
Texas Lawyer > Business & Commerce Code > Texas Business & Commerce Code - Section 4A.304. Duty Of Sender To Report Erroneously Executed Payment Order
§ 4A.304. DUTY OF SENDER TO REPORT ERRONEOUSLY EXECUTED
PAYMENT ORDER. If the sender of a payment order that is
erroneously executed as stated in Section 4A.303 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 Section
4A.402(d) 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.
Added by Acts 1993, 73rd Leg., ch. 570, § 7, eff. Sept. 1, 1993.
Section: 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 4A.406
Last modified: August 10, 2007
|
