                                 CODE OF VIRGINIA

DUTY OF SENDER TO REPORT ERRONEOUSLY EXECUTED PAYMENT ORDER (§ 8.4A-304)

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 was
executed or that the sender&#8217;s account was debited with respect to the
order, the sender has a duty to exercise ordinary care to determine, on the
basis of information available to the sender, that the order was erroneously
executed and to notify the bank of the relevant facts within a reasonable time
not exceeding ninety days after the notification from the bank was received by
the sender. If the sender fails to perform that duty, the bank is not obliged to
pay interest on any amount refundable to the sender under subsection (d) of §
8.4A-402 for the period before the bank learns of the execution error. The bank
is not entitled to any recovery from the sender on account of a failure by the
sender to perform the duty stated in this section.

HISTORY: 1990, c. 9.