Florida Statute 670.203 - Full Text and Legal Analysis

The 2025 Florida Statutes

Title XXXIX
COMMERCIAL RELATIONS

Chapter 670
UNIFORM COMMERCIAL CODE: FUNDS TRANSFERS

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670.203 Unenforceability of certain verified payment orders.—

(1) If an accepted payment order is not, under s. 670.202(1), an authorized order of a customer identified as sender, but is effective as an order of the customer pursuant to s. 670.202(2), the following rules apply:

(a) By express agreement evidenced by a record, the receiving bank may limit the extent to which it is entitled to enforce or retain payment of the payment order.

(b) The receiving bank is not entitled to enforce or retain payment of the payment order if the customer proves that the order was not caused, directly or indirectly, by a person:

1. Who was entrusted at any time with duties to act for the customer with respect to payment orders or the security procedure; or

2. Who obtained access to transmitting facilities of the customer or who obtained, from a source controlled by the customer and without authority of the receiving bank, information facilitating breach of the security procedure, regardless of how the information was obtained or whether the customer was at fault. Information includes any access device, computer software, or the like.

(2) This section applies to amendments of payment orders to the same extent it applies to payment orders.

History.—s. 1, ch. 91-70; s. 25, ch. 2025-92.

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Amendments to 670.203

Annotations, Discussions, Cases:

Cases Citing Statute 670.203

Total Results: 2 | Sort by: Relevance | Newest First

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Bancredit Cayman Ltd. v. Regions Bank Corp. (In Re Bancredit Cayman Ltd.), 419 B.R. 898 (Bankr. S.D. Fla. 2009).

Cited 1 times | Published | United States Bankruptcy Court, S.D. Florida. | 22 Fla. L. Weekly Fed. B 236, 70 U.C.C. Rep. Serv. 2d (West) 545, 2009 Bankr. LEXIS 3629, 52 Bankr. Ct. Dec. (CRR) 121

...Plaintiff has since voluntarily dismissed common law counts III, IV, V, VI, VII, VIII in part, and IX of the Amended Complaint. Only Counts I and II for breach of contract, Count VIII for accounting, Count X for turnover and Count XI for violation of Florida Statute § 670.203 remain....

...oluntary Dismissal, Without Prejudice of Counts III, IV, V, VI, VII, VIII in part, and IX [CP #74]; leaving at issue Counts I and II (for Breach of Contract), part of Count VIII (for Accounting), Count X (for Turnover) and Count XI (for Violation of § 670.203, Florida Statutes)....

...r before the filing of this complaint and to the extent relevant, more than one year prior to the order of recognition in its Chapter *912 15 case. Therefore, as a matter of law, its claim that the December 16, 2002 transfer violated Florida Statute § 670.203 is barred by the one year statute of repose set forth in Florida Statute § 670.505 and Defendant is entitled to summary judgment on Count XI of the Amended Complaint....

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Jesus Alonso Alvarez Rodriguez v. Branch Banking & Trust Co. (11th Cir. 2022).

Published | Court of Appeals for the Eleventh Circuit

...§ 670.204(1). As the commentary explains, “the bank is not entitled to any recovery from the customer based on negligence for failure to in- form the bank. Loss of interest is in the nature of a penalty on the customer designed to provide an incentive for the customer to po- lice its account.” Id. § 670.203 cmt....

...transfer: the bank or the account holder. It chose the bank. In- deed, the commentary expressly says so: “There is no intention to impose a duty on the customer that might result in shifting loss from the unauthorized order to the customer.” Id. § 670.203 cmt. That makes sense because banks control the security of their deposits, and they are in the best position to safeguard them....

...Id. The commentary explains that “[a] security procedure is not commercially unreasonable simply because another procedure might have been better or because the judge deciding the question would have opted for a more stringent procedure.” Id. § 670.203 cmt....

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