8.4A-305 - A-305. Liability for late or improper execution or failure to execute payment order. - Virginia Statutes

§ 8.4A-305. Liability for late or improper execution or failure to executepayment order.

(a) If a funds transfer is completed but execution of a payment order by thereceiving bank in breach of § 8.4A-302 results in delay in payment to thebeneficiary, the bank is obliged to pay interest to either the originator orthe beneficiary of the funds transfer for the period of delay caused by theimproper 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 §8.4A-302 results in (i) noncompletion of the funds transfer, (ii) failure touse an intermediary bank designated by the originator, or (iii) issuance of apayment order that does not comply with the terms of the payment order of theoriginator, the bank is liable to the originator for its expenses in thefunds transfer and for incidental expenses and interest losses, to the extentnot covered by subsection (a) of this section, resulting from the improperexecution. Except as provided in subsection (c) of this section, additionaldamages are not recoverable.

(c) In addition to the amounts payable under subsections (a) and (b) of thissection, damages, including consequential damages, are recoverable to theextent provided in an express written agreement of the receiving bank.

(d) If a receiving bank fails to execute a payment order it was obliged byexpress agreement to execute, the receiving bank is liable to the sender forits expenses in the transaction and for incidental expenses and interestlosses resulting from the failure to execute. Additional damages, includingconsequential damages, are recoverable to the extent provided in an expresswritten agreement of the receiving bank, but are not otherwise recoverable.

(e) Reasonable attorney's fees are recoverable if demand for compensationunder subsection (a) or (b) of this section is made and refused before anaction is brought on the claim. If a claim is made for breach of anagreement under subsection (d) of this section, and the agreement does notprovide for damages, reasonable attorney's fees are recoverable if demand forcompensation under subsection (d) of this section, is made and refused beforean action is brought on the claim.

(f) Except as stated in this section, the liability of a receiving bank undersubsections (a) and (b) of this section may not be varied by agreement.

(1990, c. 9.)