2025 Session Last amended: 1990 session

§ 336.4A-505 — Preclusion of Objection to Debit of Customer's Account

Plain-Language Summary

This section sets a deadline for a customer to challenge a debit to the customer's account for a payment order. If a receiving bank received payment from its customer for a payment order issued in the customer's name as sender and accepted by the bank, and the customer got notification reasonably identifying the order, the customer is barred from claiming the bank may not keep the payment unless the customer objects within one year after receiving that notification. Missing the one-year window means the objection is precluded.

336.4A-505 PRECLUSION OF OBJECTION TO DEBIT OF CUSTOMER’S ACCOUNT.

If a receiving bank has received payment from its customer with respect to a payment order issued in the name of the customer as sender and accepted by the bank, and the customer received notification reasonably identifying the order, the customer is precluded from asserting that the bank is not entitled to retain the payment unless the customer notifies the bank of the customer’s objection to the payment within one year after the notification was received by the customer.

History:

1990 c 582 art 1 s 36

History: History:

  1990 c 582 art 1 s 36

Practical Notes

Once your bank notifies you of a payment order charged to your account in your name, you have one year from that notice to object to the bank keeping the money. If you do not raise your objection within that one-year period, you lose the right to argue the bank was not entitled to retain the payment.

Source: Minnesota Office of the Revisor of Statutes