(a) If a receiving bank accepts a payment order issued in the name of its customer as sender and if the payment order is not authorized and not effective as the order of the customer under Alaska Stat. § 45.14.202, or not enforceable in whole or in part against the customer under Alaska Stat. § 45.14.203, the bank shall refund payment of the payment order received from the customer to the extent that 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 recovery from the customer on account of a failure by the customer to give notification as stated in this section.
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Terms Used In Alaska Statutes 45.14.204

  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(b) Reasonable time under (a) of this section may be fixed by agreement as stated in Alaska Stat. § 45.01.302(b), but the obligation of a receiving bank to refund payment as stated in (a) of this section may not otherwise be varied by agreement.
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