Sec. 42a-4A-303. Erroneous execution of payment order.
Sec. 42a-4A-303. Erroneous execution of payment order. (a) A receiving bank
that (i) executes the payment order of the sender by issuing a payment order in an amount
greater than the amount of the sender's order, or (ii) issues a payment order in execution
of the sender's order and then issues a duplicate order, is entitled to payment of the
amount of the sender's order under subsection (c) of section 42a-4A-402 if that subsection is otherwise satisfied. The bank is entitled to recover from the beneficiary of the
erroneous order the excess payment received to the extent allowed by the law governing
mistake and restitution.
(b) A receiving bank that executes the payment order of the sender by issuing a
payment order in an amount less than the amount of the sender's order is entitled to
payment of the amount of the sender's order under subsection (c) of section 42a-4A-402 if (i) that subsection is otherwise satisfied and (ii) the bank corrects its mistake by
issuing an additional payment order for the benefit of the beneficiary of the sender's
order. If the error is not corrected, the issuer of the erroneous order is entitled to receive
or retain payment from the sender of the order it accepted only to the extent of the
amount of the erroneous order. This subsection does not apply if the receiving bank
executes the sender's payment order by issuing a payment order in an amount less than
the amount of the sender's order for the purpose of obtaining payment of its charges for
services and expenses pursuant to instruction of the sender.
(c) If a receiving bank executes the payment order of the sender by issuing a payment
order to a beneficiary different from the beneficiary of the sender's order and the funds
transfer is completed on the basis of that error, the sender of the payment order that was
erroneously executed and all previous senders in the funds transfer are not obliged to
pay the payment orders they issued. The issuer of the erroneous order is entitled to
recover from the beneficiary of the order the payment received to the extent allowed by
the law governing mistake and restitution.
(P.A. 90-202, S. 1(4A-303), 3.)