Indiana § 26-1-4.1-305 Liability for late or improper execution or failure to execute payment
order

Indiana Statutes

§ 26-1-4.1-305 — Liability for late or improper execution or failure to execute payment order

Indiana § 26-1-4.1-305

Title 26COMMERCIAL LAW

Art. 1UNIFORM COMMERCIAL CODE

Ch. 4.1Fund Transfers

This text of Indiana § 26-1-4.1-305 (Liability for late or improper execution or failure to execute payment order) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 26-1-4.1-305 (2026).

Text

(a)If a funds transfer is completed but execution of a payment order by the receiving bank in breach of IC 26-1-4.1-302 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), additional damages are not recoverable.

(b)If execution of a payment order by a receiving bank in breach of IC 26-1-4.1-302 results in (i) noncompletion of the funds transfer, (ii) failure to use an intermediary bank designated by the originator, or (iii) 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 trans

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(a) If a funds transfer is completed but
execution of a payment order by the receiving bank in breach of IC 26-1-4.1-302 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), additional damages are not
recoverable.
(b) If execution of a payment order by a receiving bank in breach of
IC 26-1-4.1-302 results in (i) noncompletion of the funds transfer, (ii)
failure to use an intermediary bank designated by the originator, or (iii)
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), resulting
from the improper execution. Except as provided in subsection (c),
additional damages are not recoverable.
(c) In addition to the amounts payable under subsections (a) and (b),
damages, including consequential damages, are recoverable to the
extent provided in an express agreement of the receiving bank,
evidenced by a record.
(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 agreement of the receiving bank,
evidenced by a record, but are not otherwise recoverable.
(e) Reasonable attorney's 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 a claim is made for breach of an
agreement under subsection (d) and the agreement does not provide for
damages, reasonable attorney's fees are recoverable if demand for
compensation under subsection (d) 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) may not be varied by agreement.