§ 336.4A-304 — Duty of Sender to Report Erroneously Executed Payment Order
Plain-Language Summary
When a sender of a payment order receives notice from the receiving bank that the order was executed or that the sender's account was debited, the sender must use ordinary care to figure out, from the information available to it, whether the order was executed erroneously and to tell the bank the relevant facts. The sender must do this within a reasonable time that cannot exceed 90 days after receiving the bank's notice. If the sender fails to meet this duty, the bank does not have to pay interest on any amount it must refund for the period before it learns of the error. The bank still cannot recover anything from the sender just because the sender failed to perform this reporting duty.
336.4A-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 336.4A-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 336.4A-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.
History:
History: History:
1990 c 582 art 1 s 24