554.12304 Duty of sender to report erroneously executed payment order. If the sender of a payment order that is erroneously executed as stated in section 554.12303 receives notification from the receiving bank that the order was executed or that the sender’saccount was debited with respect to the order, the sender has a duty to exercise ordinarycare to determine, on the basis of information available to the sender, that the order waserroneously executed and to notify the bank of the relevant facts within a reasonable timenot exceeding ninety days after the notification from the bank is received by the sender. Ifthe sender fails to perform that duty, the bank is not obligated to pay interest on any amountrefundable to the sender under section 554.12402, subsection 4, for the period before thebank learns of the execution error. The bank is not entitled to any recovery from the senderas a result of the failure by the sender to perform the duty stated in this section. 92 Acts, ch 1146, §24Referred to in §554.12402 Sat Dec 23 11:02:56 2023 Iowa Code 2024, Section 554.12304 (24, 0)
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