KRS 355.4A-304: Duty of sender to report erroneously executed payment order.

If the sender of a payment order that is erroneously executed as stated in KRS 355.4A -

303 receives notification from the receiving bank that the order was executed or that the

sender's account was debited with respect to the order, the sender has a duty to exercise

ordinary care to determine, on the basis of information available to the sender, that the

order was erroneously executed and to notify the bank of the relevant facts within a

reasonable time not exceeding ninety (90) days after the notification f rom the bank was

received by the sender. If the sender fails to perform that duty, the bank is not obliged to

pay interest on any amount refundable to the sender under KRS 355.4A -402(4) for the

period before the bank learns of the execution error. The bank is not entitled to any

recovery from the sender on account of a failure by the sender to perform the duty stated

in this section.