§ 4A-204. Refund of payment and duty of customer to report unauthorized payment order
West's Annotated Code of MarylandCommercial LawEffective: June 1, 2012
Effective: June 1, 2012
MD Code, Commercial Law, § 4A-204
§ 4A-204. Refund of payment and duty of customer to report unauthorized payment order
(a)(1) If a receiving bank accepts a payment order issued in the name of its customer as sender which is (i) not authorized and not effective as the order of the customer under § 4A-202 of this subtitle or (ii) not enforceable, in whole or in part, against the customer under § 4A-203 of this subtitle, the receiving bank shall refund any payment of the payment order received from the customer to the extent that the receiving bank is not entitled to enforce payment and shall pay interest on the refundable amount calculated from the date the bank received payment to the date of the refund.
(2) Notwithstanding paragraph (1) of this subsection, the customer is not entitled to interest from the bank on the amount to be refunded if the customer fails to exercise ordinary care to determine that the order was not authorized by the customer and to notify the bank of the relevant facts within a reasonable time not exceeding 90 days after the date the customer received notification from the bank that the order was accepted or that the customer's account was debited with respect to the order.
Credits
Added by Acts 1991, c. 548, § 1, eff. July 1, 1991. Amended by Acts 2012, c. 673, § 2, eff. June 1, 2012.
MD Code, Commercial Law, § 4A-204, MD COML § 4A-204
Current with all legislation from the 2023 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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