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Can you summarize NVRS 104A.4204?
Uniform Commercial CodeAdditional Articles > Refund of payment and duty of customer to report with respect to unauthorized payment order.
Short Summary
This legal document, part of the Nevada Revised Statutes under the Uniform Commercial CodeAdditional Articles, governs the refund of payment and the duty of customers to report unauthorized payment orders. According to the document, if a receiving bank accepts a payment order issued in the name of its customer without authorization or enforceability, the bank must refund the payment to the extent it is not entitled to enforce payment. The bank is also required to pay interest on the refundable amount. However, the customer is only entitled to interest if they exercise ordinary care to determine the unauthorized order and notify the bank within a reasonable time, not exceeding 90 days. The document also states that the bank cannot recover from the customer for a failure to give notification. The concept of ‘reasonable time’ can be agreed upon, but the obligation of the bank to refund payment cannot be varied by agreement. No specific exemptions or 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 penalties are mentioned.
Jurisdiction
Nevada