This text of New York § 4-A-205 (Erroneous Payment Orders) is published on Counsel Stack Legal Research, covering New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Section 4-A-205. Erroneous Payment Orders.\n (1) If an accepted payment order was transmitted pursuant to a\nsecurity procedure for the detection of error and the payment order (i)\nerroneously instructed payment to a beneficiary not intended by the\nsender, (ii) erroneously instructed payment in an amount greater than\nthe amount intended by the sender, or (iii) was an erroneously\ntransmitted duplicate of a payment order previously sent by the sender,\nthe following rules apply:\n (a) If the sender proves that the sender or a person acting on\n behalf of the sender pursuant to Section 4-A-206 complied\n with the security procedure and that the error would have\n been detected if the receiving bank had also complied, the\n sender is not oblig
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Section 4-A-205. Erroneous Payment Orders.\n (1) If an accepted payment order was transmitted pursuant to a\nsecurity procedure for the detection of error and the payment order (i)\nerroneously instructed payment to a beneficiary not intended by the\nsender, (ii) erroneously instructed payment in an amount greater than\nthe amount intended by the sender, or (iii) was an erroneously\ntransmitted duplicate of a payment order previously sent by the sender,\nthe following rules apply:\n (a) If the sender proves that the sender or a person acting on\n behalf of the sender pursuant to Section 4-A-206 complied\n with the security procedure and that the error would have\n been detected if the receiving bank had also complied, the\n sender is not obliged to pay the order to the extent stated\n in paragraphs (b) and (c).\n (b) If the funds transfer is completed on the basis of an\n erroneous payment order described in clause (i) or (iii) of\n subsection (1), the sender is not obliged to pay the order\n and the receiving bank is entitled to recover from the\n beneficiary any amount paid to the beneficiary to the extent\n allowed by the law governing mistake and restitution.\n (c) If the funds transfer is completed on the basis of a payment\n order described in clause (ii) of subsection (1), the sender\n is not obliged to pay the order to the extent the amount\n received by the beneficiary is greater than the amount\n intended by the sender. In that case, the receiving bank is\n entitled to recover from the beneficiary the excess amount\n received to the extent allowed by the law governing mistake\n and restitution.\n (2) If (i) the sender of an erroneous payment order described in\nsubsection (1) is not obliged to pay all or part of the order, and (ii)\nthe sender receives notification from the receiving bank that the order\nwas accepted by the bank or that the sender's account was debited with\nrespect to the order, the sender has a duty to exercise ordinary care,\non the basis of information available to the sender, to discover the\nerror with respect to the order and to advise the bank of the relevant\nfacts within a reasonable time, not exceeding ninety days, after the\nbank's notification was received by the sender. If the bank proves that\nthe sender failed to perform that duty, the sender is liable to the bank\nfor the loss the bank proves it incurred as a result of the failure, but\nthe liability of the sender may not exceed the amount of the sender's\norder.\n (3) This section applies to amendments to payment orders to the same\nextent it applies to payment orders.\n