400.4A-304. Duty of sender to report erroneously executed payment order. - Missouri Statutes

Duty of sender to report erroneously executed payment order.

400.4A-304. If the sender of a payment order that iserroneously executed as stated in section 400.4A-303 receivesnotification from the receiving bank that the order was executedor that the sender's account was debited with respect to theorder, the sender has a duty to exercise ordinary care todetermine, on the basis of information available to the sender,that the order was erroneously executed and to notify the bank ofthe relevant facts within a reasonable time not exceeding ninetydays after the notification from the bank was received by thesender. If the sender fails to perform that duty, the bank isnot obliged to pay interest on any amount refundable to thesender under section 400.4A-402(d) for the period before the banklearns of the execution error. The bank is not entitled to anyrecovery from the sender on account of a failure by the sender toperform the duty stated in this section.

(L. 1992 S.B. 448)