47-4A305. Liability for late or improper
execution or failure to execute payment order
A. If a funds transfer is completed but execution of a payment order by the
receiving bank in breach of section 47-4A302 results in delay in payment to the
beneficiary, the bank is obliged to pay interest to either the originator or the
beneficiary of the funds transfer for the period of delay caused by the improper
execution. Except as provided in subsection C of this section, additional damages are
not recoverable.
B. If execution of a payment order by a receiving bank in breach of section
47-4A302 results in noncompletion of the funds transfer, failure to use an intermediary
bank designated by the originator or issuance of a payment order that does not comply
with the terms of the payment order of the originator, the bank is liable to the
originator for its expenses in the funds transfer and for incidental expenses and
interest losses, to the extent not covered by subsection A of this section, resulting
from the improper execution. Except as provided in subsection C of this section,
additional damages are not recoverable.
C. In addition to the amounts payable under subsections A and B of this section,
damages, including consequential damages, are recoverable to the extent provided in an
express written agreement of the receiving bank.
D. If a receiving bank fails to execute a payment order it was obliged by express
agreement to execute, the receiving bank is liable to the sender for its expenses in the
transaction and for incidental expenses and interest losses resulting from the failure to
execute. Additional damages, including consequential damages, are recoverable to the
extent provided in an express written agreement of the receiving bank, but are not
otherwise recoverable.
E. Reasonable attorney fees are recoverable if demand for compensation under
subsection A or B of this section is made and refused before an action is brought on the
claim. If a claim is made for breach of an agreement under subsection D of this section
and the agreement does not provide for damages, reasonable attorney fees are recoverable
if demand for compensation under subsection D of this section is made and refused before
an action is brought on the claim.
F. Except as stated in this section, the liability of a receiving bank under
subsections A and B of this section may not be varied by agreement.
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