8.4A-304 - A-304. Duty of sender to report erroneously executed payment order. - Virginia Statutes

§ 8.4A-304. Duty of sender to report erroneously executed payment order.

If the sender of a payment order that is erroneously executed as stated in §8.4A-303 receives notification from the receiving bank that the order wasexecuted or that the sender's account was debited with respect to the order,the sender has a duty to exercise ordinary care to determine, on the basis ofinformation available to the sender, that the order was erroneously executedand to notify the bank of the relevant facts within a reasonable time notexceeding ninety days after the notification from the bank was received bythe sender. If the sender fails to perform that duty, the bank is notobliged to pay interest on any amount refundable to the sender undersubsection (d) of § 8.4A-402 for the period before the bank learns of theexecution error. The bank is not entitled to any recovery from the sender onaccount of a failure by the sender to perform the duty stated in this section.

(1990, c. 9.)