If the sender of a payment order that is erroneously executed as stated in section 490:4A-303 receives notification from the receiving bank that the order was executed or that
the sender's account was debited with respect to the order, the sender has a duty
to exercise ordinary care to determine, on the basis of information available to the
sender, that the order was erroneously executed and to notify the bank of the relevant
facts within a reasonable time not exceeding ninety days after the notification from
the bank was received by the sender. If the sender fails to perform that duty, the bank is not obliged to pay interest
on any amount refundable to the sender under section 490:4A-402(d) for the period before the bank learns of the execution error. The bank is not entitled to any recovery from the sender on account of a failure by
the sender to perform the duty stated in this section.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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