§ 10:4A-203 — Unenforceability of certain verified payment orders

§4A-203. Unenforceability of certain verified payment orders
(a) If an accepted payment order is not, under R.S. 10:4A-202(a), an authorized order
of a customer identified as sender, but is effective as an order of the customer pursuant to
R.S. 10:4A-202(b), the following rules apply:
(1) By express agreement evidenced by a record, the receiving bank may limit the
extent to which it is entitled to enforce or retain payment of the payment order.
(2) The receiving bank is not entitled to enforce or retain payment of the payment
order if the customer proves that the order was not caused, directly or indirectly, by a person
(i) entrusted at any time with duties to act for the customer with respect to payment orders
or the security procedure, or (ii) who obtained access to transmitting facilities of the
customer or who obtained, from a source controlled by the customer and without authority
of the receiving bank, information facilitating breach of the security procedure, regardless
of how the information was obtained or whether the customer was at fault. Information
includes any access device, computer software, or the like.
(b) This Section applies to amendments of payment orders to the same extent it
applies to payment orders.

Legislative History

Added by Acts 1990, No. 1079, §4, eff. Sept. 1, 1990; Acts 2024, No. 773, §1.