2025 Session
Last amended: 1990 session
§ 336.4A-503 — Injunction or Restraining Order With Respect to Funds Transfer
Plain-Language Summary
If a receiving bank makes a payment to a beneficiary by mistake (wrong beneficiary, duplicate payment, overpayment), the bank can recover the mistaken payment from the beneficiary.
336.4A-503 INJUNCTION OR RESTRAINING ORDER WITH RESPECT TO FUNDS TRANSFER.
For proper cause and in compliance with applicable law, a court may restrain (i) a person from issuing a payment order to initiate a funds transfer, (ii) an originator’s bank from executing the payment order of the originator, or (iii) the beneficiary’s bank from releasing funds to the beneficiary or the beneficiary from withdrawing the funds. A court may not otherwise restrain a person from issuing a payment order, paying or receiving payment of a payment order, or otherwise acting with respect to a funds transfer.
History:
History: History:
1990 c 582 art 1 s 34
Practical Notes
If a bank sends you money by mistake in a wire transfer, the bank can take it back.