North Dakota § 41-04.1-23 (4A-303) Erroneous execution of payment order

North Dakota Statutes

§ 41-04.1-23 — (4A-303) Erroneous execution of payment order

North Dakota § 41-04.1-23

Title 41Uniform Commercial Code

Ch. 41-04.1Funds Transfers

This text of North Dakota § 41-04.1-23 ((4A-303) Erroneous execution of payment order) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.D. Cent. Code § 41-04.1-23 (2026).

Text

1.A receiving bank that 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 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 3 of section 41-04.1-27 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.

2.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 3 of section

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1. A receiving bank that 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 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 3 of section 41-04.1-27
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.
2. 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 3 of section 41-04.1-27 if that
subsection is otherwise satisfied and 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.
3. 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.