New York § 4-A-303 Erroneous Execution of Payment Order

New York Statutes

§ 4-A-303 — Erroneous Execution of Payment Order

New York § 4-A-303

Law UCCUniform Commercial Code

Part 3Execution of Sender's Payment Order By Receiving Bank

Art. 4-AFunds Transfers

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Bluebook

N.Y. Uniform Commercial Code § 4-A-303 (2026).

Text

Section 4-A-303. Erroneous Execution of Payment Order.\n  (1) A receiving bank that (i) executes the payment order of the sender\nby issuing a payment order in an amount greater than the amount of the\nsender's order, or (ii) issues a payment order in execution of the\nsender's order and then issues a duplicate order, is entitled to payment\nof the amount of the sender's order under subsection (3) of Section\n4-A-402 if that subsection is otherwise satisfied. The bank is entitled\nto recover from the beneficiary of the erroneous order the excess\npayment received to the extent allowed by the law governing mistake and\nrestitution.\n  (2) A receiving bank that executes the payment order of the sender by\nissuing a payment order in an amount less than the amount of the\nsender's order is ent

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Section 4-A-303. Erroneous Execution of Payment Order.\n (1) A receiving bank that (i) executes the payment order of the sender\nby issuing a payment order in an amount greater than the amount of the\nsender's order, or (ii) issues a payment order in execution of the\nsender's order and then issues a duplicate order, is entitled to payment\nof the amount of the sender's order under subsection (3) of Section\n4-A-402 if that subsection is otherwise satisfied. The bank is entitled\nto recover from the beneficiary of the erroneous order the excess\npayment received to the extent allowed by the law governing mistake and\nrestitution.\n (2) A receiving bank that executes the payment order of the sender by\nissuing a payment order in an amount less than the amount of the\nsender's order is entitled to payment of the amount of the sender's\norder under subsection (3) of Section 4-A-402 if (i) that subsection is\notherwise satisfied and (ii) the bank corrects its mistake by issuing an\nadditional payment order for the benefit of the beneficiary of the\nsender's order. If the error is not corrected, the issuer of the\nerroneous order is entitled to receive or retain payment from the sender\nof the order it accepted only to the extent of the amount of the\nerroneous order. This subsection does not apply if the receiving bank\nexecutes the sender's payment order by issuing a payment order in an\namount less than the amount of the sender's order for the purpose of\nobtaining payment of its charges for services and expenses pursuant to\ninstruction of the sender.\n (3) If a receiving bank executes the payment order of the sender by\nissuing a payment order to a beneficiary different from the beneficiary\nof the sender's order and the funds transfer is completed on the basis\nof that error, the sender of the payment order that was erroneously\nexecuted and all previous senders in the funds transfer are not obliged\nto pay the payment orders they issued. The issuer of the erroneous order\nis entitled to recover from the beneficiary of the order the payment\nreceived to the extent allowed by the law governing mistake and\nrestitution.\n