§ 6A-4.1-304. Duty of sender to report erroneously executed payment order.
If the sender of a payment order that is erroneously executed as stated in § 6A-4.1-303 receives notification from the receiving bank that the order was executed or that the sender’s account was debited with respect to the order, the sender has a duty to exercise ordinary care to determine, on the basis of information available to the sender, that the order was erroneously executed and to notify the bank of the relevant facts within a reasonable time not exceeding ninety (90) days after the notification from the bank was received by the sender. If the sender fails to perform that duty, the bank is not obliged to pay interest on any amount refundable to the sender under § 6A-4.1-402(d) for the period before the bank learns of the execution error. The bank is not entitled to any recovery from the sender on account of a failure by the sender to perform the duty stated in this section.
History of Section.P.L. 1991, ch. 189, § 1.
Structure Rhode Island General Laws
Title 6A - Uniform Commercial Code
Chapter 6A-4.1 - Funds Transfers
Part 3 - Execution of Sender’s Payment Order by Receiving Bank
Section 6A-4.1-301. - Execution and execution date.
Section 6A-4.1-302. - Obligations of receiving bank in execution of payment order.
Section 6A-4.1-303. - Erroneous execution of payment order.
Section 6A-4.1-304. - Duty of sender to report erroneously executed payment order.
Section 6A-4.1-305. - Liability for late or improper execution or failure to execute payment order.