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Can you summarize NVRS 104A.4205?
Uniform Commercial CodeAdditional Articles > Erroneous payment orders.
Short Summary
This section of the Nevada Revised Statutes, under the Uniform Commercial CodeAdditional Articles, governs the treatment of erroneous payment orders. It applies to senders of payment orders and receiving banks. If a payment order is transmitted with errors such as instructing payment to the wrong beneficiary, instructing payment for an amount greater than intended, or being a duplicate of a previous order, certain rules apply. If the sender proves 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 is not obliged to pay and the receiving bank can recover the amount paid from the beneficiary. If the amount received by the beneficiary is greater than intended, the sender is not obliged to pay the excess amount, and the receiving bank can recover the excess from the beneficiary. If the sender is not obliged to pay all or part of an erroneous payment order and receives notification from the receiving bank, they have a duty to exercise ordinary care to discover the error and inform the bank within 90 days. Failure to do so may result in liability to the bank for the loss incurred. This section also applies to amendments to payment orders. There are no specific exemptions mentioned in this section.
Whom does it apply to?
Senders of payment orders and receiving banks
What does it govern?
Erroneous payment orders
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Liability of the sender may not exceed the amount of their order
Jurisdiction
Nevada