§ 25-4A-305. Liability for late or improper execution or failure to execute payment order.
§25‑4A‑305. Liability for late or improper execution or failure toexecute payment order.
(a) If a funds transferis completed but execution of a payment order by the receiving bank in breachof G.S. 25‑4A‑302 results in delay in payment to the beneficiary,the bank is obliged to pay interest to either the originator or the beneficiaryof the funds transfer for the period of delay caused by the improperexecution. Except as provided in subsection (c), additional damages are notrecoverable.
(b) If execution of apayment order by a receiving bank in breach of G.S. 25‑4A‑302results in (i) noncompletion of the funds transfer, (ii) failure to use anintermediary bank designated by the originator, or (iii) issuance of a paymentorder that does not comply with the terms of the payment order of theoriginator, the bank is liable to the originator for its expenses in the fundstransfer and for incidental expenses and interest losses, to the extent notcovered by subsection (a), resulting from the improper execution. Except asprovided in subsection (c), additional damages are not recoverable.
(c) In addition to theamounts payable under subsections (a) and (b), damages, including consequentialdamages, are recoverable to the extent provided in an express written agreementof the receiving bank.
(d) If a receiving bankfails to execute a payment order it was obliged by express agreement toexecute, the receiving bank is liable to the sender for its expenses in thetransaction and for incidental expenses and interest losses resulting from thefailure to execute. Additional damages, including consequential damages, arerecoverable to the extent provided in an express written agreement of thereceiving bank, but are not otherwise recoverable.
(e) Reasonableattorneys' fees are recoverable if demand for compensation under subsection (a)or (b) is made and refused before an action is brought on the claim. If aclaim is made for breach of an agreement under subsection (d) and the agreementdoes not provide for damages, reasonable attorneys' fees are recoverable ifdemand for compensation under subsection (d) is made and refused before anaction is brought on the claim.
(f) Except as statedin this section, the liability of a receiving bank under subsections (a) and(b) may not be varied by agreement. (1993, c. 157, s. 1.)