Ask Reggi Your Question Now
Can you summarize NHRS 382-A:4A-305?
UNIFORM COMMERCIAL CODE > Liability for Late or Improper Execution or Failure to Execute Payment Order.
Short Summary
This legal provision, found in the New Hampshire Revised Statutes under the Uniform Commercial Code, governs 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 4A-302, resulting in a delay in payment to the beneficiary, the bank is obliged to pay interest for the period of delay caused by the improper execution. If the breach 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. However, additional damages are generally not recoverable, unless provided for 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, incidental expenses, and interest losses. Similar to the previous scenario, additional damages are recoverable only if provided for in an express agreement of the receiving bank. Reasonable attorney’s fees are also recoverable in certain circumstances. The liability of a receiving bank under this provision cannot be varied by agreement, except as explicitly stated.
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?
No exemptions are mentioned.
What are the Penalties?
Additional damages, including consequential damages, may be recoverable as provided in an express written agreement of the receiving bank.
Jurisdiction
New Hampshire