§ 11-111-112 — Duties and liability of bank

(1) A bank does not have a fiduciary
duty to any person with respect to a special deposit.

(2) When the bank holding a special deposit becomes obligated to pay a
beneficiary, a debtor-creditor relationship arises between the bank and beneficiary.

(3) The bank holding a special deposit has a duty to a beneficiary to comply
with the account agreement and this article 111.

(4) If the bank holding a special deposit does not comply with the account
agreement or this article 111, the bank is liable to a depositor or beneficiary only for
damages proximately caused by the noncompliance. Except as provided by other
law of this state, the bank is not liable for consequential, special, or punitive
damages.

(5) The bank holding a special deposit may rely on records presented in
compliance with the account agreement to determine whether the bank is
obligated to pay a beneficiary.

(6) If the account agreement requires payment on presentation of a record,
the bank shall determine within a reasonable time whether the record is sufficient
to require payment. If the agreement requires action by the bank on presentation of
a record, the bank is not liable for relying in good faith on the genuineness of the
record if the record appears on its face to be genuine.

(7) Unless the account agreement provides otherwise, the bank is not
required to determine whether a permissible purpose stated in the agreement
continues to exist.

Legislative History

Source: L. 2024: Entire article added, (HB 24-1232), ch. 200, p. 1227, � 1, effective August 7.