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Can you summarize MNST 336.4A-204?
UNIFORM COMMERCIAL CODE > REFUND OF PAYMENT AND DUTY OF CUSTOMER TO REPORT WITH RESPECT TO UNAUTHORIZED PAYMENT ORDER.
Short Summary
This legal document, governed by the Minnesota Statutes under the Trade Regulations and Consumer Protection section of the Uniform Commercial Code, pertains to the refund of payment and the duty of the customer to report unauthorized payment orders. If a receiving bank accepts a payment order issued in the name of its customer that is not authorized or enforceable against the customer, the bank is required to refund any payment received from the customer to the extent it is not entitled to enforce payment. The bank must also pay interest on the refundable amount. However, the customer is not entitled to interest if they fail to exercise ordinary care in determining that the order was unauthorized and notifying the bank within a reasonable time, not exceeding 90 days. The bank cannot recover any amount from the customer for a failure to give notification. The reasonable time for notification may be fixed by agreement, but the obligation of the receiving bank to refund payment cannot be varied by agreement. No specific penalties are mentioned in this document.
Whom does it apply to?
Receiving banks and their customers
What does it govern?
Refund of payment and duty of customer to report with respect to unauthorized payment order
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Minnesota