70A-4a-305 - Liability for late or improper execution or failure to execute payment order. - Utah Statutes

70A-4a-305. Liability for late or improper execution or failure to execute paymentorder.
(1) If a funds transfer is completed but execution of a payment order by the receivingbank in breach of Section 70A-4a-302 results in delay in payment to the beneficiary, the bank isobliged to pay interest to either the originator or the beneficiary of the funds transfer for theperiod of delay caused by the improper execution. Except as provided in Subsection (3),additional damages are not recoverable.
(2) (a) If execution of a payment order by a receiving bank in breach of Section70A-4a-302 results in noncompletion of the funds transfer, failure to use an intermediary bankdesignated by the originator, or issuance of a payment order that does not comply with the termsof the payment order of the originator, the bank is liable to the originator for its expenses in thefunds transfer and for incidental expenses and interest losses, to the extent not covered bySubsection (1), resulting from the improper execution.
(b) Except as provided in Subsection (3), additional damages are not recoverable.
(3) In addition to the amounts payable under Subsections (1) and (2), damages, includingconsequential damages, are recoverable to the extent provided in an express written agreement ofthe receiving bank.
(4) If a receiving bank fails to execute a payment order it was obliged by expressagreement to execute, the receiving bank is obliged to compensate the sender for its expenses inthe transaction and for incidental expenses and interest losses resulting from the failure toexecute. Additional damages, including consequential damages, are recoverable to the extentprovided in an express written agreement of the receiving bank, but are not otherwise recoverable.
(5) Reasonable attorneys' fees are recoverable if demand for compensation underSubsection (1) or (2) is made and refused before an action is brought on the claim. If a claim ismade for breach of the agreement under Subsection (4) and the agreement does not provide fordamages, reasonable attorneys' fees are recoverable if demand for compensation under Subsection(4) is made and refused before an action is brought on the claim.
(6) Except as stated in this section, the liability of a receiving bank under Subsections (1)and (2) may not be varied by agreement.

Amended by Chapter 237, 1993 General Session