(810 ILCS 5/4A-304) (from Ch. 26, par. 4A-304)
Sec. 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 Section 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 90 days after the notification from
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 Section 4A-402(d) 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.
(Source: P.A. 86-1291.)
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