                                 CODE OF VIRGINIA

ERRONEOUS EXECUTION OF PAYMENT ORDER (§ 8.4A-303)

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&#8217;s
order, or (ii) issues a payment order in execution of the sender&#8217;s order
and then issues a duplicate order, is entitled to payment of the amount of the
sender&#8217;s order under subsection (c) of &#xA7; 8.4A-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&#8217;s order is
entitled to a payment of the amount of the sender&#8217;s order under subsection
(c) of &#xA7; 8.4A-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&#8217;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&#8217;s payment order by issuing a payment order in an
amount less than the amount of the sender&#8217;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&#8217;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.

HISTORY: 1990, c. 9.