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First Substitute H.B. 134
6 This act modifies the Uniform Commercial Code to create a penalty for certain unauthorized
7 electronic transactions.
8 This act affects sections of Utah Code Annotated 1953 as follows:
10 70A-4-112, Utah Code Annotated 1953
11 Be it enacted by the Legislature of the state of Utah:
12 Section 1. Section 70A-4-112 is enacted to read:
13 70A-4-112. Liability for unauthorized electronic fund transfers.
14 (1) For purposes of this section:
15 (a) "unauthorized electronic transaction" means an electronic transfer of monies from an
17 (i) initiated by a person other than the customer that maintains the account; and
18 (ii) without authority to initiate the transfer; and
19 (b) "unauthorized electronic transaction" does not include an electronic fund transfer:
20 (i) initiated with the fraudulent intent of the customer or a person acting with the
21 knowledge of the customer;
22 (ii) that is initiated by:
23 (A) a bank; or
24 (B) an employee of a bank; or
25 (iii) initiated in reliance on a written contract between the customer and the person that
26 initiates the transfer of the monies.
27 (2) A person may not request or receive monies through an unauthorized electronic
29 (3) In addition to any other liability under this title, a person that violates Subsection (2):
30 (a) shall return to the customer:
31 (i) any monies transferred in violation of Subsection (2); and
32 (ii) any penalties imposed on the customer as a result of the unauthorized electronic
33 transaction; and
34 (b) is liable to the customer of the account from which the monies are transferred for an
35 amount equal to the greater of:
36 (i) $200; or
37 (ii) three times the amount requested to be transferred by the unauthorized electronic
39 (4) (a) To collect an amount that a customer is owed under Subsection (3), the customer
40 may file a civil action in any court of competent jurisdiction.
41 (b) A court shall award the prevailing party in a civil action described in Subsection (4)(a):
42 (i) attorney fees, except that the attorneys fees may not exceed the amount described in
43 Subsection (3)(b); and
44 (ii) court costs.
45 (5) Notwithstanding Subsection (3)(b), a person is not liable under Subsection (3)(b) if that
46 person can demonstrate that:
47 (a) there was an authorization for the electronic transfer of funds that was requested by the
49 (b) the electronic transfer of funds was inadvertently transferred from an account other
50 than the account for which there was an authorization; and
51 (c) promptly upon discovery of the inadvertent transfer, the person takes the actions
52 required by Subsection (3)(a).
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