Minnesota Legislature
Office of the Revisor of Statutes
2006 Minnesota Statutes
This is an historical version of this statute chapter. Also view the most recent published version.
336.4A-203 UNENFORCEABILITY OF CERTAIN VERIFIED PAYMENT ORDERS.
(a) If an accepted payment order is not, under section 336.4A-202(a), an authorized order of
a customer identified as sender, but is effective as an order of the customer pursuant to section
336.4A-202(b), the following rules apply:
(1) By express written agreement, the receiving bank may limit the extent to which it is
entitled to enforce or retain payment of the payment order.
(2) The receiving bank is not entitled to enforce or retain payment of the payment order
if the customer proves that the order was not caused, directly or indirectly, by a person (i)
entrusted at any time with duties to act for the customer with respect to payment orders or the
security procedure, or (ii) who obtained access to transmitting facilities of the customer or who
obtained, from a source controlled by the customer and without authority of the receiving bank,
information facilitating breach of the security procedure, regardless of how the information was
obtained or whether the customer was at fault. Information includes any access device, computer
software, or the like.
(b) This section applies to amendments of payment orders to the same extent it applies to
payment orders.
History: 1990 c 582 art 1 s 11
(a) If an accepted payment order is not, under section 336.4A-202(a), an authorized order of
a customer identified as sender, but is effective as an order of the customer pursuant to section
336.4A-202(b), the following rules apply:
(1) By express written agreement, the receiving bank may limit the extent to which it is
entitled to enforce or retain payment of the payment order.
(2) The receiving bank is not entitled to enforce or retain payment of the payment order
if the customer proves that the order was not caused, directly or indirectly, by a person (i)
entrusted at any time with duties to act for the customer with respect to payment orders or the
security procedure, or (ii) who obtained access to transmitting facilities of the customer or who
obtained, from a source controlled by the customer and without authority of the receiving bank,
information facilitating breach of the security procedure, regardless of how the information was
obtained or whether the customer was at fault. Information includes any access device, computer
software, or the like.
(b) This section applies to amendments of payment orders to the same extent it applies to
payment orders.
History: 1990 c 582 art 1 s 11
Official Publication of the State of Minnesota
Revisor of Statutes