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Can you summarize MNST 336.4A-305?
UNIFORM COMMERCIAL CODE > LIABILITY FOR LATE OR IMPROPER EXECUTION OR FAILURE TO EXECUTE PAYMENT ORDER.
Short Summary
This legal document, governed by the Minnesota Statutes under the Uniform Commercial Code, addresses the liability of receiving banks in cases of late or improper execution or failure to execute a payment order. If a funds transfer is completed but the receiving bank breaches section 336.4A-302, resulting in a delay in payment to the beneficiary, the bank is obliged to pay interest to either the originator or the beneficiary for the period of delay caused by the improper execution. If the execution of a payment order by the receiving bank breaches section 336.4A-302 and 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 originator’s payment order, the bank is liable to the originator for its expenses in the funds transfer, as well as for incidental expenses and interest losses resulting from the improper execution. Damages, including consequential damages, are recoverable to the extent provided in an express written agreement of the receiving bank. If a receiving bank fails to execute a payment order it was obliged to execute by express agreement, the bank is liable to the sender for its expenses in the transaction, as well as 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 written agreement of the receiving bank. Reasonable attorney’s fees are recoverable if demand for compensation is made and refused before an action is brought on the claim. The liability of a receiving bank under this document may not be varied by agreement, except as stated in the document itself.
Whom does it apply to?
Receiving banks involved in funds transfers
What does it govern?
Liability for late or improper execution or failure to execute payment order
What are exemptions?
Damages, including consequential damages, are recoverable to the extent provided in an express written agreement of the receiving bank
What are the Penalties?
No specific penalties mentioned
Jurisdiction
Minnesota