KRS 355.4A-303: Erroneous execution of payment order.

(1) A receiving bank that:

(a) Executes the payment order of the sender by issuing a payment order in an

amount greater than the amount of the sender's order; or

(b) Issues a payment order in execution of the sender's order and then issues a

duplicate order, is entitled to payment of th e amount of the sender's order

under KRS 355.4A -402(3) if that subsection is otherwise satisfied. The bank

is entitled to recover from the beneficiary of the erroneous order the excess

payment received to the extent allowed by the law governing mistake and

restitution.

(2) A receiving bank that executes the payment order of the sender by issuing a

payment order in an amount less than the amount of the sender's order is entitled to

payment of the amount of the sender's order under KRS 355.4A-402(3) if:

(a) That subsection is otherwise satisfied; and

(b) The bank corrects its mistake by issuing an additional payment order for the

benefit of the beneficiary of the sender's order. If the error is not corrected, the

issuer of the erroneous order is entitled to re ceive or retain payment from the

sender of the order it accepted only to the extent of the amount of the

erroneous order. This subsection does not apply if the receiving bank executes

the sender's payment order by issuing a payment order in an amount less than

the amount of the sender's order for the purpose of obtaining payment of its

charges for services and expenses pursuant to instruction of the sender.

(3) If a receiving bank executes the payment order of the sender by issuing a payment

order to a bene ficiary different from the beneficiary of the sender's order and the

funds transfer is completed on the basis of that error, the sender of the payment

order that was erroneously executed and all previous senders in the funds transfer

are not obliged to pay the payment orders they issued. The issuer of the erroneous

order is entitled to recover from the beneficiary of the order the payment received to

the extent allowed by the law governing mistake and restitution.