§ 25-4A-203. Unenforceability of certain verified payment orders. - North Carolina Statutes

§25‑4A‑203.  Unenforceability of certain verified payment orders.

(a)        If an acceptedpayment order is not, under G.S. 25‑4A‑202(a), an authorized orderof a customer identified as sender, but is effective as an order of thecustomer pursuant to G.S. 25‑4A‑202(b), the following rules apply:

(1)        By express writtenagreement, the receiving bank may limit the extent to which it is entitled toenforce or retain payment of the payment order.

(2)        The receiving bankis not entitled to enforce or retain payment of the payment order if thecustomer proves that the order was not caused, directly or indirectly, by aperson (i) entrusted at any time with duties to act for the customer withrespect to payment orders or the security procedure, or (ii) who obtained accessto transmitting facilities of the customer or who obtained, from a sourcecontrolled by the customer and without authority of the receiving bank,information facilitating breach of the security procedure, regardless of howthe information was obtained or whether the customer was at fault.  Informationincludes any access device, computer software, or the like.

(b)        This sectionapplies to amendments of payment orders to the same extent it applies topayment orders. (1993, c. 157, s. 1.)