§ 41-04.1-25 — (4A-305) Liability for late or improper execution or failure to execute payment order

North Dakota § 41-04.1-25

• Jurisdiction: North Dakota
• Title 41: Uniform Commercial Code
• Ch. 41-04.1: Funds Transfers

Text

payment order.
1. If a funds transfer is completed but execution of a payment order by the receiving bank
in breach of section 41-04.1-22 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 3, additional damages are not recoverable.
2. If execution of a payment order by a receiving bank in breach of section 41-04.1-22
results in noncompletion of the funds transfer, failure to use an intermediary bank
designated by the originator, or 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 1, resulting from the improper execution. Except
as provided in subsection 3, additional damages are not recoverable.
3. In addition to the amounts payable under subsections 1 and 2, damages, including
consequential damages, are recoverable to the extent provided in an express
agreement of the receiving bank, evidenced by a record.
4. 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.
5. Reasonable attorney's fees are recoverable if demand for compensation under
subsection 1 or 2 is made and refused before an action is brought on the claim. If a
claim is made for breach of an agreement under subsection 4 and the agreement does
not provide for damages, reasonable attorney's fees are recoverable if demand for
compensation under subsection 4 is made and refused before an action is brought on
the claim.
6. Except as stated in this section, the liability of a receiving bank under subsections 1
and 2 may not be varied by agreement.