(a) A receiving bank that (i) executes the payment order of the sender by issuing a payment order in an amount greater than the amount of the sender's order, or (ii) issues a payment order in execution of the sender's order and then issues a duplicate order, is entitled to payment of the amount of the sender's order under subsection (c) of section 42a-4A-402 if that subsection is otherwise satisfied. The bank is entitled to recover from the beneficiary of the erroneous order the excess payment received to the extent allowed by the law governing mistake and restitution.
(b) A receiving bank that executes the payment order of the sender by issuing a payment order in an amount less than the amount of the sender's order is entitled to payment of the amount of the sender's order under subsection (c) of section 42a-4A-402 if (i) that subsection is otherwise satisfied and (ii) the bank corrects its mistake by issuing an additional payment order for the benefit of the beneficiary of the sender's order. If the error is not corrected, the issuer of the erroneous order is entitled to receive or retain payment from the sender of the order it accepted only to the extent of the amount of the erroneous order. This subsection does not apply if the receiving bank executes the sender's payment order by issuing a payment order in an amount less than the amount of the sender's order for the purpose of obtaining payment of its charges for services and expenses pursuant to instruction of the sender.
(c) If a receiving bank executes the payment order of the sender by issuing a payment order to a beneficiary different from the beneficiary of the sender's order and the funds transfer is completed on the basis of that error, the sender of the payment order that was erroneously executed and all previous senders in the funds transfer are not obliged to pay the payment orders they issued. The issuer of the erroneous order is entitled to recover from the beneficiary of the order the payment received to the extent allowed by the law governing mistake and restitution.
(P.A. 90-202, S. 1(4A-303), 3.)
Structure Connecticut General Statutes
Title 42a - Uniform Commercial Code
Section 42a-4A-101. - Short title: Uniform Commercial Code–Funds Transfers.
Section 42a-4A-102. - Subject matter.
Section 42a-4A-103. - Payment order; definitions.
Section 42a-4A-104. - Funds transfer; definitions.
Section 42a-4A-105. - Other definitions.
Section 42a-4A-106. - Time payment order is received.
Section 42a-4A-107. - Federal regulations and operating circulars.
Section 42a-4A-108. - Application of article to certain funds transfers governed by federal law.
Section 42a-4A-201. - Security procedure.
Section 42a-4A-202. - Authorized and verified payment orders.
Section 42a-4A-203. - Unenforceability of certain verified payment orders.
Section 42a-4A-205. - Erroneous payment orders.
Section 42a-4A-207. - Misdescription of beneficiary.
Section 42a-4A-208. - Misdescription of intermediary bank or beneficiary's bank.
Section 42a-4A-209. - Acceptance of payment order.
Section 42a-4A-210. - Rejection of payment order.
Section 42a-4A-211. - Cancellation and amendment of payment order.
Section 42a-4A-212. - Liability and duty of receiving bank regarding unaccepted payment order.
Section 42a-4A-301. - Execution and execution date.
Section 42a-4A-302. - Obligations of receiving bank in execution of payment order.
Section 42a-4A-303. - Erroneous execution of payment order.
Section 42a-4A-304. - Duty of sender to report erroneously executed payment order.
Section 42a-4A-305. - Liability for late or improper execution or failure to execute payment order.
Section 42a-4A-401. - Payment date.
Section 42a-4A-402. - Obligation of sender to pay receiving bank.
Section 42a-4A-403. - Payment by sender to receiving bank.
Section 42a-4A-404. - Obligation of beneficiary's bank to pay and give notice to beneficiary.
Section 42a-4A-405. - Payment by beneficiary's bank to beneficiary.
Section 42a-4A-406. - Payment by originator to beneficiary; discharge of underlying obligation.
Section 42a-4A-501. - Variation by agreement and effect of funds-transfer system rule.
Section 42a-4A-502. - Creditor process served on receiving bank; set-off by beneficiary's bank.
Section 42a-4A-503. - Injunction or restraining order with respect to funds transfer.
Section 42a-4A-505. - Preclusion of objection to debit of customer's account.