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Can you summarize NVRS 104A.4303?
Uniform Commercial CodeAdditional Articles > Erroneous execution of payment order.
Short Summary
This legal document, part of the Nevada Revised Statutes, specifically the Uniform Commercial CodeAdditional Articles, governs the execution of payment orders by receiving banks. It outlines the rights and entitlements of receiving banks in case of erroneous execution of payment orders. If a receiving bank issues a payment order in an amount greater than the sender’s order or issues a duplicate order, the bank is entitled to payment of the sender’s order and can recover the excess payment from the beneficiary. On the other hand, if the receiving bank issues a payment order in an amount less than the sender’s order, it is entitled to payment of the sender’s order if it corrects its mistake by issuing an additional payment order for the benefit of the beneficiary. However, if the error is not corrected, the issuer of the erroneous order can only receive or retain payment up to the amount of the erroneous order. The document also addresses situations where a receiving bank executes a payment order to a different beneficiary, resulting in a completed funds transfer based on that error. In such cases, the sender and previous senders are not obliged to pay the payment orders they issued, and the issuer of the erroneous order can recover the payment received from the beneficiary. The specific provisions and entitlements mentioned in this document are subject to the law governing mistake and restitution. The document does provide an exemption for receiving banks executing payment orders in an amount less than the sender’s order for the purpose of obtaining payment of their charges for services and expenses as per the sender’s instruction.
Whom does it apply to?
Receiving banks, senders of payment orders, beneficiaries of payment orders
What does it govern?
Uniform Commercial CodeAdditional Articles
What are exemptions?
The receiving bank executing a payment order in an amount less than the sender's order for the purpose of obtaining payment of its charges for services and expenses pursuant to instruction of the sender.
What are the Penalties?
Receiving bank is entitled to recover the excess payment received from the beneficiary of the erroneous order to the extent allowed by the law governing mistake and restitution.
Jurisdiction
Nevada