{"data":{"id":"us-ky/krs-355.4a-303","jurisdiction":"us-ky","citation":"KRS 355.4A-303","heading":"Erroneous execution of payment order.","body":"(1) A receiving bank that:\n(a) Executes the payment order of the sender by issuing a payment order in an\namount greater than the amount of the sender's order; or\n(b) Issues a payment order in execution of the sender's order and then issues a\nduplicate order, is entitled to payment of th e amount of the sender's order\nunder KRS 355.4A -402(3) if that subsection is otherwise satisfied. The bank\nis entitled to recover from the beneficiary of the erroneous order the excess\npayment received to the extent allowed by the law governing mistake and\nrestitution.\n(2) A receiving bank that executes the payment order of the sender by issuing a\npayment order in an amount less than the amount of the sender's order is entitled to\npayment of the amount of the sender's order under KRS 355.4A-402(3) if:\n(a) That subsection is otherwise satisfied; and\n(b) The bank corrects its mistake by issuing an additional payment order for the\nbenefit of the beneficiary of the sender's order. If the error is not corrected, the\nissuer of the erroneous order is entitled to re ceive or retain payment from the\nsender of the order it accepted only to the extent of the amount of the\nerroneous order. This subsection does not apply if the receiving bank executes\nthe sender's payment order by issuing a payment order in an amount less than\nthe amount of the sender's order for the purpose of obtaining payment of its\ncharges for services and expenses pursuant to instruction of the sender.\n(3) If a receiving bank executes the payment order of the sender by issuing a payment\norder to a bene ficiary different from the beneficiary of the sender's order and the\nfunds transfer is completed on the basis of that error, the sender of the payment\norder that was erroneously executed and all previous senders in the funds transfer\nare not obliged to pay  the payment orders they issued. The issuer of the erroneous\norder is entitled to recover from the beneficiary of the order the payment received to\nthe extent allowed by the law governing mistake and restitution.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33577","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:45Z","sha256":"c90abdbf821573997a084b761bbec835e9b840b72fa19ac8cd2976af6a2ee574","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.4a-302","next":"us-ky/krs-355.4a-304"},"notice":"GroundRules: Original legal text. Not legal advice."}