There is a newer version of the Kentucky Revised Statutes
2009 Kentucky Revised Statutes
Article 4A Funds Transfers
355.4A.305 Liability for late or improper execution or failure to execute payment order.
Download pdfthe 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 KRS 355.4A-302 results in:
(a) Noncompletion of the funds transfer;
(b) Failure to use an intermediary bank designated by the originator; or
(c) 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 written agreement of the receiving bank. (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 written agreement of the receiving
bank, 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. Effective: July 14, 1992
History: Created 1992 Ky. Acts ch. 116, sec. 48, effective July 14, 1992.
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