§ 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 under subsection 4A—402(c) of this title 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 4A—402(c) of this title 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. (Added 1993, No. 158 (Adj. Sess.), § 14, eff. Jan. 1, 1995.)
Structure Vermont Statutes
Title 9A - Uniform Commercial Code
§ 4A—103. Payment order—definitions
§ 4A—104. Funds transfer—definitions
§ 4A—106. Time payment order is received
§ 4A—107. Federal Reserve regulations and operating circulars
§ 4A—108. Relationship to Electronic Fund Transfer Act
§ 4A—202. Authorized and verified payment orders
§ 4A—203. Unenforceability of certain verified payment orders
§ 4A—205. Erroneous payment orders
§ 4A—206. Transmission of payment order through funds-transfer or other communication system
§ 4A—207. Misdescription of beneficiary
§ 4A—208. Misdescription of intermediary bank or beneficiary’s bank
§ 4A—209. Acceptance of payment order
§ 4A—210. Rejection of payment order
§ 4A—211. Cancellation and amendment of payment order
§ 4A—212. Liability and duty of receiving bank regarding unaccepted payment order
§ 4A—301. Execution and execution date
§ 4A—302. Obligations of receiving bank in execution of payment order
§ 4A—303. Erroneous execution of payment order
§ 4A—304. Duty of sender to report erroneously executed payment order
§ 4A—305. Liability for late or improper execution or failure to execute payment order
§ 4A—402. Obligation of sender to pay receiving bank
§ 4A—403. Payment by sender to receiving bank
§ 4A—404. Obligation of beneficiary’s bank to pay and give notice to beneficiary
§ 4A—405. Payment by beneficiary’s bank to beneficiary
§ 4A—406. Payment by originator to beneficiary; discharge of underlying obligation
§ 4A—501. Variation by agreement and effect of funds-transfer system rule
§ 4A—502. Creditor process served on receiving bank; setoff by beneficiary’s bank
§ 4A—503. Injunction or restraining order with respect to funds transfer
§ 4A—505. Preclusion of objection to debit of customer’s account