If a receiving bank has received payment from its customer with respect to a payment order issued in the name of the customer as sender and accepted by the bank, and the customer received notification reasonably identifying the order, the customer is precluded from asserting that the bank is not entitled to retain the payment unless the customer notifies the bank of the customer's objection to the payment within one year after the notification was received by the customer.
Tex. Bus. & Com. Code § 4A.505
PRECLUSION OF OBJECTION TO DEBIT OF CUSTOMER'S ACCOUNT
Known as the Uniform Commercial Code
The act spans §§ 1–12 (616 sections).
Applied in 1 court decision — leading case Contractors Source, Inc. v. Amegy Bank National Association D/B/A Amegy Bank of Texas (2015)
Most recently applied in Contractors Source, Inc. v. Amegy Bank National Association D/B/A Amegy Bank of Texas (February 2015)
Added by Acts 1993, 73rd Leg., ch. 570, Sec. 7, eff
Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.