The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 9A V.S.A. § 4A-204)
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§ 4A—204. Refund of payment and duty of customer to report with respect to unauthorized payment
order
(a) If a receiving bank accepts a payment order issued in the name of its customer as
sender which is (i) not authorized and not effective as the order of the customer
under section 4A—202 of this title, or (ii) not enforceable, in whole or in part, against the customer under section 4A—203 of this title, the bank shall refund any payment of the payment order received from the customer
to the extent the bank is not entitled to enforce payment and shall pay interest on
the refundable amount calculated from the date the bank received payment to the date
of the refund. However, the customer is not entitled to interest from the bank on
the amount to be refunded if the customer fails to exercise ordinary care to determine
that the order was not authorized by the customer and to notify the bank of the relevant
facts within a reasonable time not exceeding 90 days after the date the customer received
notification from the bank that the order was accepted or that the customer’s account
was debited with respect to the order. The bank is not entitled to any recovery from
the customer on account of a failure by the customer to give notification as stated
in this section.
(b) Reasonable time under subsection (a) of this section may be fixed by agreement as
stated in subsection 1—302(b) of this title, but the obligation of a receiving bank to refund payment as stated in subsection
(a) of this section may not otherwise be varied by agreement. (Added 1993, No. 158 (Adj. Sess.), § 14, eff. Jan. 1, 1995; amended 2007, No. 99 (Adj. Sess.), § 15.)