{"data":{"id":"us-ky/krs-355.4a-204","jurisdiction":"us-ky","citation":"KRS 355.4A-204","heading":"Refund of payment and duty of customer to report with respect to","body":"unauthorized payment order.\n(1) If a receiving bank accepts a payment order issued in the name of its customer as\nsender which is:\n(a) Not authorized and not effective as the order of  the customer under KRS\n355.4A-202; or\n(b) Not enforceable, in whole or in part, against the customer under KRS 355.4A -\n203, the bank shall refund any payment of the payment order received from\nthe customer to the extent the bank is not entitled to enforce payment and shall\npay interest on the refundable amount calculated from the date the bank\nreceived payment to the date of the refund. However, the customer is not\nentitled to interest from the bank on the amount to be refunded if the customer\nfails to exer cise ordinary care to determine that the order was not authorized\nby the customer and to notify the bank of the relevant facts within a\nreasonable time not exceeding ninety (90) days after the date the customer\nreceived notification from the bank that the order was accepted or that the\ncustomer's account was debited with respect to the order. The bank is not\nentitled to any recovery from the customer on account of a failure by the\ncustomer to give notification as stated in this section.\n(2) Reasonable time under subsection (1) of this section may be fixed by agreement as\nstated in KRS 355.1 -302(2), but the obligation of a receiving bank to refund\npayment as stated in subsection (1) may not otherwise be varied by agreement.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33566","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:45Z","sha256":"89443fbf2bc14fa9a3bcc3a97421d4cf12c14dc35bffd547d42747cc0b92aa0f","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.4a-203","next":"us-ky/krs-355.4a-205"},"notice":"GroundRules: Original legal text. Not legal advice."}