2006 New York Code - Erroneous Payment Orders.

 
  Section 4-A-205. Erroneous Payment Orders.
    (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  4-A-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 ninety 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.