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Can you summarize NVRS 104A.4305?
Uniform Commercial CodeAdditional Articles > Liability for late or improper execution or failure to execute payment order.
Short Summary
This legal document, part of the Nevada Revised Statutes under the Uniform Commercial CodeAdditional Articles, governs the liability of receiving banks and originators in funds transfers. If a receiving bank executes a payment order in breach of NRS 104A.4302, resulting in 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 execution of a payment order by a receiving bank 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, incidental expenses, and interest losses. Damages, including consequential damages, may be recoverable as 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, it is liable to the sender for expenses in the transaction, incidental expenses, and interest losses. 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.
Whom does it apply to?
Receiving banks and originators 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
Nevada