New Jersey § 12a:4a-205

§ 12a:4a-205.

(1) If an accepted payment order was transmitted pursuant to a security procedure

for the detection of error and the payment order (i) erroneously instructed payment

to a beneficiary not intended by the sender, (ii) erroneously instructed payment in

an amount greater than the amount intended by the sender, or (iii) 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 behalf of the sender

pursuant to section 12A:4A-206 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 an erroneous payment order

described in clause (i) or (iii) of 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 described in

clause (ii) of 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 (i) the sender of an erroneous payment order described in subsection (1) is

not obliged to pay all or part of the order, and (ii) 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 the sender, 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 the sender. 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 the sender's order. (3) This section applies to amendments to payment orders to the same extent it applies

to payment orders.