New York Laws
Part 3 - Execution of Sender's Payment Order by Receiving Bank
4-A-303 - Erroneous Execution of Payment Order.

(1) 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 (3) of Section
4-A-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.
(2) 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 (3) of Section 4-A-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.
(3) 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.

Structure New York Laws