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Can you summarize NHRS 382-A:4A-205?
UNIFORM COMMERCIAL CODE > Erroneous Payment Orders.
Short Summary
This section of the New Hampshire Revised Statutes, specifically Chapter 382-A of the Uniform Commercial Code, governs the handling of erroneous payment orders in funds transfers. It applies to senders and receiving banks involved in such transfers. The section outlines rules for cases where a payment order is transmitted with errors, such as instructing payment to the wrong beneficiary, instructing payment for an incorrect amount, or being a duplicate of a previous order. If the sender can prove compliance with the security procedure and that the error would have been detected if the receiving bank had also complied, the sender is not obliged to pay the order. If the funds transfer is completed based on an erroneous payment order, the sender may not be obliged to pay and the receiving bank may be entitled to recover the amount paid from the beneficiary. Similarly, if the amount received by the beneficiary is greater than intended, the sender may not be obliged to pay the excess amount, and the receiving bank may be entitled to recover it from the beneficiary. The section also imposes a duty on senders to exercise ordinary care in discovering and reporting errors within a reasonable time. Amendments to payment orders are also subject to the same rules. No specific penalties are mentioned in this section.
Whom does it apply to?
Senders and receiving banks involved in funds transfers
What does it govern?
Erroneous Payment Orders
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
New Hampshire