355.4A-203 Unenforceability of certain verified payment orders.
(1) If an accepted payment order is not, under KRS 355.4A-202(1), an authorized order
of a customer identified as sender, but is effective as an order of the customer <br>pursuant to KRS 355.4A-202(2), the following rules apply: <br>(a) By express written agreement, the receiving bank may limit the extent to
which it is entitled to enforce or retain payment of the payment order.
(b) The receiving bank is not entitled to enforce or retain payment of the payment
order if the customer proves that the order was not caused, directly or <br>indirectly, by a person:
1.
Entrusted at any time with duties to act for the customer with respect to <br>payment orders or the security procedure; or
2.
Who obtained access to transmitting facilities of the customer or who <br>obtained, from a source controlled by the customer and without authority <br>of the receiving bank, information facilitating breach of the security <br>procedure, regardless of how the information was obtained or whether <br>the customer was at fault.
Information includes any access device, computer software, or the like.
(2) This section applies to amendments of payment orders to the same extent it applies
to payment orders.
Effective: July 14, 1992 <br>History: Created 1992 Ky. Acts ch. 116, sec. 34, effective July 14, 1992.
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