12A:4A-304. Duty of sender to report erroneously executed payment order
12A: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 12A: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 12A:4A-402(4) 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.
L.1994,c.114,s.2.
Section: Previous 12a-4a-209 12a-4a-210 12a-4a-211 12a-4a-212 12a-4a-301 12a-4a-302 12a-4a-303 12a-4a-304 12a-4a-305 12a-4a-401 12a-4a-402 12a-4a-403 12a-4a-404 12a-4a-405 12a-4a-406 Next
Last modified: October 11, 2016