If the sender of a payment order that is erroneously executed as stated in Section 36-4A-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 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 Section 36-4A-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: 1996 Act No. 221, Section 1.
Structure South Carolina Code of Laws
Chapter 4A - Commercial Code - Funds Transfers
Section 36-4A-101. Short title.
Section 36-4A-102. Subject matter.
Section 36-4A-103. Payment order-Definitions.
Section 36-4A-104. Funds transfer-Definitions.
Section 36-4A-105. Other definitions.
Section 36-4A-106. Time payment order is received.
Section 36-4A-107. Federal reserve regulations and operating circulars.
Section 36-4A-108. Application of chapter.
Section 36-4A-201. Security procedure.
Section 36-4A-202. Authorized and verified payment orders.
Section 36-4A-203. Unenforceability of certain verified payment orders.
Section 36-4A-205. Erroneous payment orders.
Section 36-4A-207. Misdescription of beneficiary.
Section 36-4A-208. Misdescription of intermediary bank or beneficiary's bank.
Section 36-4A-209. Acceptance of payment order.
Section 36-4A-210. Rejection of payment order.
Section 36-4A-211. Cancellation and amendment of payment order.
Section 36-4A-212. Liability and duty of receiving bank regarding unaccepted payment order.
Section 36-4A-301. Execution and execution date.
Section 36-4A-302. Obligations of receiving bank in execution of payment order.
Section 36-4A-303. Erroneous execution of payment order.
Section 36-4A-304. Duty of sender to report erroneously executed payment order.
Section 36-4A-305. Liability for late or improper execution or failure to execute payment order.
Section 36-4A-401. Payment date.
Section 36-4A-402. Obligation of sender to pay receiving bank.
Section 36-4A-403. Payment by sender to receiving bank.
Section 36-4A-404. Obligation of beneficiary's bank to pay and give notice to beneficiary.
Section 36-4A-405. Payment by beneficiary's bank to beneficiary.
Section 36-4A-406. Payment by originator to beneficiary; discharge of underlying obligation.
Section 36-4A-501. Variation by agreement and effect of funds-transfer system rule.
Section 36-4A-502. Creditor process served on receiving bank; setoff by beneficiary's bank.
Section 36-4A-503. Injunction or restraining order with respect to funds transfer.
Section 36-4A-505. Preclusion of objection to debit of customer's account.