§ 4A203. Unenforceability of certain verified payment orders.
(a) General rule.--If an accepted payment order is not, under section 4A202(a) (relating to authorized and verified payment orders), an authorized order of a customer identified as sender, but is effective as an order of the customer pursuant to section 4A202(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:
(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.
(b) Amendments of payment orders.--This section applies to amendments of payment orders to the same extent it applies to payment orders.
Cross References. Section 4A203 is referred to in sections 4A202, 4A204 of this title.Section: Previous 4a201 4a202 4a203 4a204 4a205 4a206 4a207 4a208 4a209 4a210 4a211 4a212 Next
Last modified: October 8, 2016