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Can you summarize IACO 554.12203?
UNIFORM COMMERCIAL CODE > Unenforceability of certain verified payment orders.
Short Summary
This legal provision, found in the Iowa Code under the Uniform Commercial Code, addresses the unenforceability of certain verified payment orders. It applies to receiving banks and customers involved in payment transactions. If a payment order is not authorized by the customer but is still effective as an order, the receiving bank may limit its enforcement or retention of payment through a written agreement. However, if the customer can prove that the order was not caused by an authorized person or that unauthorized access to customer information facilitated a breach of the security procedure, the receiving bank is not entitled to enforce or retain payment. This provision also applies to amendments of payment orders. No specific exemptions or penalties are mentioned in this document.
Whom does it apply to?
Receiving banks and customers
What does it govern?
Unenforceability of certain verified payment orders
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Iowa