2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 4A2 - Issue and Acceptance of Payment Order
Section 4A204 - Refund of payment and duty of customer to report with respect to unauthorized payment order

     § 4A204.  Refund of payment and duty of customer to report with
                respect to unauthorized payment order.
        (a)  General rule.--If a receiving bank accepts a payment
     order issued in the name of its customer as sender which is not
     authorized and not effective as the order of the customer under
     section 4A202 (relating to authorized and verified payment
     orders) or not enforceable, in whole or in part, against the
     customer under section 4A203 (relating to unenforceability of
     certain verified payment orders), 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 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. 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.
        (b)  Reasonable time.--Reasonable time under subsection (a)
     may be fixed by agreement as stated in section 1205(a) (relating
     to reasonable time; seasonableness), but the obligation of a
     receiving bank to refund payment as stated in subsection (a) may
     not otherwise be varied by agreement.
     (Apr. 16, 2008, P.L.57, No.13, eff. 60 days)

        2008 Amendment.  Act 13 amended subsec. (b).
        Cross References.  Section 4A204 is referred to in section
     4A402 of this title.