Nevada § 104A.4205 - Erroneous payment orders

§ 104A.4205. Erroneous payment orders

1. If an accepted payment order was transmitted pursuant to a security procedure for

the detection of error and the payment order erroneously instructed payment to a beneficiary

not intended by the sender, erroneously instructed payment in an amount greater than

the amount intended by the sender, or was an erroneously transmitted duplicate of

a payment order previously sent by the sender, the following rules apply: (a) If the sender proves that the sender or a person acting on his or her behalf pursuant

to NRS 104A.4206 complied with the security procedure and that the error would have been detected

if the receiving bank had also complied, the sender is not obliged to pay the order

to the extent stated in paragraphs (b) and (c). (b) If the funds transfer is completed on the basis of a payment order erroneous for

the first or third reason described in subsection 1, the sender is not obliged to

pay the order and the receiving bank is entitled to recover from the beneficiary any

amount paid to the beneficiary to the extent allowed by the law governing mistake

and restitution. (c) If the funds transfer is completed on the basis of a payment order erroneous for

the second reason described in subsection 1, the sender is not obliged to pay the

order to the extent the amount received by the beneficiary is greater than the amount

intended by the sender. In that case, the receiving bank is entitled to recover from the beneficiary the excess

amount received to the extent allowed by the law governing mistake and restitution. 2. If the sender of an erroneous payment order described in subsection 1 is not obliged

to pay all or part of the order, and the sender receives notification from the receiving

bank that the order was accepted by the bank or that the sender’s account was debited

with respect to the order, the sender has a duty to exercise ordinary care, on the

basis of information available to him or her, to discover the error with respect to

the order and to advise the bank of the relevant facts within a reasonable time, not

exceeding 90 days, after the bank's notification was received by him or her. If the bank proves that the sender failed to perform that duty, the sender is liable

to the bank for the loss the bank proves it incurred as a result of the failure, but

the liability of the sender may not exceed the amount of his or her order. 3. This section applies to amendments to payment orders to the same extent it applies

to payment orders.