§ 4-29. The bank's liability when the payee initiates the payment

Finansavtaleloven·LOV-2020-12-18-146

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The text of the law (unofficial translation)

§ 4-29. Liability for a transaction initiated by or via the payee

(1) The payee's (betalingsmottakerens) payment service provider (betalingstjenesteyter) is liable to the payee for execution in accordance with § 4-11 fourth paragraph and shall immediately re-transmit the payment order (betalingsoppdraget) to the payer's (betalerens) payment service provider when required. The same applies to execution in accordance with § 4-12. If the payer's payment service provider documents execution to the payee, the payer's payment service provider is liable to the payer.
(2) For liability under the first paragraph, § 4-28 second and third paragraphs apply correspondingly.
Source: Lovdata — Finansavtaleloven (the Financial Contracts Act) § 4-29

What does this mean?

The section applies to payments that the payee initiates, or that go via the payee, for example a direct debit (direktebelastning). Here, the payee's bank is answerable to the payee for the order being executed, and it must send the order again to the payer's bank when needed. If the payer's bank documents to the payee that the order has been executed, it is the payer's bank that is answerable to the payer. The second paragraph brings in the rules in § 4-28 on refunds and interest calculation, which makes the section a mirror image of the rule for payments the payer initiates themselves.

Related sections
All sections of the Financial Contracts Act →