2006 New York Code - Liability For Late Or Improper Execution Or Failure To Execute Payment Order

 
  Section 4-A-305. Liability  for Late or Improper Execution or Failure to
                     Execute Payment Order.
    (1) If a funds transfer is completed but execution of a payment  order
  by  the  receiving bank in breach of Section 4-A-302 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 4-A-302 results in (i) noncompletion of the funds transfer, (ii)
  failure to use an intermediary bank designated  by  the  originator,  or
  (iii) 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.