2006 New York Code - Refund Of Payment And Duty Of Customer To Report With Respect To Unauthorized Payment Order.

 
  Section 4-A-204. Refund  of  Payment and Duty of Customer to Report With
                     Respect to Unauthorized Payment Order.
    (1) If a receiving bank accepts a payment order issued in the name  of
  its  customer as sender which is (a) not authorized and not effective as
  the order of the customer under Section 4-A-202, or (b) not enforceable,
  in whole or in part, against the customer  under  Section  4-A-203,  the
  bank  shall  refund  any  payment of the payment order received from the
  customer to the extent the 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. However, 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 ninety 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. The bank is not entitled to any recovery from the customer on
  account  of  a failure by the customer to give notification as stated in
  this section.
    (2) Reasonable time under subsection (1) may be fixed by agreement  as
  stated  in  subsection  (1)  of  Section  1-204, but the obligation of a
  receiving bank to refund payment as stated in  subsection  (1)  may  not
  otherwise be varied by agreement.