84-4a-303. Erroneous execution of payment order. (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 in accordance with subsection (c) of K.S.A. 84-4a-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 K.S.A. 84-4a-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.
History: L. 1990, ch. 367, § 23; L. 1991, ch. 294, § 18; July 1.
Structure Kansas Statutes
Chapter 84 - Uniform Commercial Code
84-4a-103 Payment order—definitions.
84-4a-104 Funds transfer—definitions.
84-4a-106 84-4a-106.Time payment order is received.
84-4a-107 Federal reserve regulations and operating circulars.
84-4a-108 Exclusion of consumer transactions governed by federal law; exceptions.
84-4a-202 Authorized and verified payment orders.
84-4a-203 Unenforceability of certain verified payment orders.
84-4a-205 Erroneous payment orders.
84-4a-206 Transmission of payment order through funds transfer or other communication system.
84-4a-207 Misdescription of beneficiary.
84-4a-208 Misdescription of intermediary bank or beneficiary's bank.
84-4a-209 Acceptance of payment order.
84-4a-210 Rejection of payment order.
84-4a-211 Cancellation and amendment of payment order.
84-4a-212 Liability and duty of receiving bank regarding unaccepted payment order.
84-4a-301 Execution and execution date.
84-4a-302 Obligations of receiving bank in execution of payment order.
84-4a-303 Erroneous execution of payment order.
84-4a-304 Duty of sender to report erroneously executed payment order.
84-4a-305 Liability for late or improper execution or failure to execute payment order.
84-4a-402 Obligation of sender to pay receiving bank.
84-4a-403 Payment by sender to receiving bank.
84-4a-404 Obligation of beneficiary's bank to pay and give notice to beneficiary.
84-4a-405 Payment by beneficiary's bank to beneficiary.
84-4a-406 Payment by originator to beneficiary; discharge of underlying obligation.
84-4a-501 Variation by agreement and effect of funds-transfer system rule.
84-4a-502 Creditor process served on receiving bank; setoff by beneficiary's bank.
84-4a-503 Injunction or restraining order with respect to funds transfer.
84-4a-505 Preclusion of objection to debit of customer's account.