§ 41-04.1-11 — (4A-203) Unenforceability of certain verified payment orders

North Dakota § 41-04.1-11

• Jurisdiction: North Dakota
• Title 41: Uniform Commercial Code
• Ch. 41-04.1: Funds Transfers

Text

1. If an accepted payment order is not, under subsection 1 of section 41-04.1-10, an
authorized order of a customer identified as sender, but is effective as an order of the
customer under subsection 2 of section 41-04.1-10, the following rules apply:
a. 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.
b. 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 entrusted at any time with duties to act for the customer with respect
to payment orders or the security procedure or by a person 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.
2. This section applies to amendments of payment orders to the same extent it applies to
payment orders.