§ 10:4A-305 — Liability for late or improper execution or failure to execute payment order

Louisiana § 10:4A-305

• Jurisdiction: Louisiana
• Title 10: Commercial Laws

Text

§4A-305. Liability for late or improper execution or failure to execute payment order
(a) If a funds transfer is completed but execution of a payment order by the receiving
bank in breach of R.S. 10:4A-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 R.S. 10:4A-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) of this Section, resulting from the improper execution. Except
as provided in Subsection (c) of this Section, additional damages are not recoverable.
(c) In addition to the amounts payable under Subsections (a) and (b) of this Section,
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.

Legislative History

Added by Acts 1990, No. 1079, §4, eff. Sept. 1, 1990; Acts 2024, No. 773, §1.