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Can you summarize MNST 336.4A-203?
UNIFORM COMMERCIAL CODE > UNENFORCEABILITY OF CERTAIN VERIFIED PAYMENT ORDERS.
Short Summary
This legal document, part of the Minnesota Statutes under the TRADE REGULATIONS, CONSUMER PROTECTION section, specifically falls under the UNIFORM COMMERCIAL CODE. It addresses the unenforceability of certain verified payment orders. If a payment order is not an authorized order of a customer but is effective as an order of the customer, the receiving bank may limit its entitlement to enforce or retain payment through an express written agreement. However, if the customer can prove that the order was not caused by a person entrusted with duties related to payment orders or the security procedure, or by someone who obtained unauthorized access to the customer’s transmitting facilities or information facilitating breach of the security procedure, the receiving bank is not entitled to enforce or retain payment. This section also applies to amendments of payment orders. No specific penalties are mentioned in this document.
Whom does it apply to?
Receiving banks and customers involved in payment orders
What does it govern?
UNENFORCEABILITY OF CERTAIN VERIFIED PAYMENT ORDERS
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Minnesota