KANSAS OFFICE of
  REVISOR of STATUTES

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84-4a-304. Duty of sender to report erroneously executed payment order. If the sender of a payment order that is erroneously executed as stated in K.S.A. 84-4a-303 receives notification from the receiving bank that the order was executed or that the sender'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 90 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 K.S.A. 84-4a-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: L. 1990, ch. 367, § 24; L. 1991, ch. 294, § 19; July 1.

KANSAS COMMENT, 1996

This section is identical to the 1995 Official Text.

A sender has a duty to examine the notices of payment of the payment orders the sender issued for execution errors under the prior section and notify the bank within a reasonable time, not to exceed 90 days. If it fails to do so, it is not entitled to interest on amounts wrongfully charged to the sender. There is no other penalty.


 



This website has moved to KSRevisor.gov