Indiana Code
Chapter 4.1. Fund Transfers
26-1-4.1-303. Erroneous Execution of Payment Order

Sec. 303. (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 IC 26-1-4.1-402(c) 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 IC 26-1-4.1-402(c) 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.
As added by P.L.189-1991, SEC.4.

Structure Indiana Code

Indiana Code

Title 26. Commercial Law

Article 1. Uniform Commercial Code

Chapter 4.1. Fund Transfers

26-1-4.1-101. Short Title

26-1-4.1-102. Subject Matter

26-1-4.1-103. Payment Order—definitions

26-1-4.1-104. Funds Transfer—definitions

26-1-4.1-105. Other Definitions

26-1-4.1-106. Time Payment Order Is Received

26-1-4.1-107. Federal Reserve Regulations and Operating Circulars

26-1-4.1-108. Exclusion of Consumer Transactions Governed by Federal Law

26-1-4.1-201. "Security Procedure"

26-1-4.1-202. Authorized and Verified Payment Orders

26-1-4.1-203. Unenforceability of Certain Verified Payment Orders

26-1-4.1-204. Refund of Payment and Duty of Customer to Report With Respect to Unauthorized Payment Order

26-1-4.1-205. Erroneous Payment Orders

26-1-4.1-206. Transmission of Payment Order Through Funds-Transfer or Other Communication System

26-1-4.1-207. Misdescription of Beneficiary

26-1-4.1-208. Misdescription of Intermediary Bank or Beneficiary's Bank

26-1-4.1-209. Acceptance of Payment Order

26-1-4.1-210. Rejection of Payment Order

26-1-4.1-211. Cancellation and Amendment of Payment Order

26-1-4.1-212. Liability and Duty of Receiving Bank Regarding Unaccepted Payment Order

26-1-4.1-301. Execution and Execution Date

26-1-4.1-302. Obligations of Receiving Bank in Execution of Payment Order

26-1-4.1-303. Erroneous Execution of Payment Order

26-1-4.1-304. Duty of Sender to Report Erroneously Executed Payment Order

26-1-4.1-305. Liability for Late or Improper Execution or Failure to Execute Payment Order

26-1-4.1-401. "Payment Date"

26-1-4.1-402. Obligation of Sender to Pay Receiving Bank

26-1-4.1-403. Payment by Sender to Receiving Bank

26-1-4.1-404. Obligation of Beneficiary's Bank to Pay and Give Notice to Beneficiary

26-1-4.1-405. Payment by Beneficiary's Bank to Beneficiary

26-1-4.1-406. Payment by Originator to Beneficiary; Discharge of Underlying Obligation

26-1-4.1-501. Variation by Agreement and Effect of Funds Transfer System Rule

26-1-4.1-502. Creditor Process Served on Receiving Bank; Setoff by Beneficiary's Bank

26-1-4.1-503. Injunction or Restraining Order With Respect to Funds Transfer

26-1-4.1-504. Order in Which Items and Payment Orders May Be Charged to Account; Order of Withdrawals From Account

26-1-4.1-505. Preclusion of Objection to Debit of Customer's Account

26-1-4.1-506. Rate of Interest

26-1-4.1-507. Choice of Law