12A:4A-203. Unenforceability of certain verified payment orders
12A:4A-203. Unenforceability of certain verified payment orders.
(1) If an accepted payment order is not, under section 12A:4A-202(1), an authorized order of a customer identified as sender, but is effective as an order of the customer pursuant to section 12A:4A-202(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.
(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 (ii) 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.
(2) This section applies to amendments of payment orders to the same extent it applies to payment orders.
L.1994,c.114,s.2.
Section: Previous 12a-4a-104 12a-4a-105 12a-4a-106 12a-4a-107 12a-4a-108 12a-4a-201 12a-4a-202 12a-4a-203 12a-4a-204 12a-4a-205 12a-4a-206 12a-4a-207 12a-4a-208 12a-4a-209 12a-4a-210 Next
Last modified: October 11, 2016