28-4-625. 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 the provisions of section 28-4-622 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) of this section, additional damages are not recoverable.
(2) If execution of a payment order by a receiving bank in breach of section 28-4-622 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 in subsection (1) of this section, resulting from the improper execution.
Except as provided in subsection (3) of this section, additional damages are not recoverable.
(3) In addition to the amounts payable under subsections (1) and (2) of this section, 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) of this section 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) of this section, and the agreement does not provide for damages, reasonable attorney’s fees are recoverable if demand for compensation under subsection (4) of this section, 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) of this section, may not be varied by agreement.
History:
[28-4-625, added 1991, ch. 135, sec. 1, p. 309.]
Structure Idaho Code
Title 28 - COMMERCIAL TRANSACTIONS
Chapter 4 - UNIFORM COMMERCIAL CODE — BANK DEPOSITS AND COLLECTIONS
Section 28-4-601 - SHORT TITLE.
Section 28-4-602 - SUBJECT MATTER.
Section 28-4-603 - PAYMENT ORDER — DEFINITIONS.
Section 28-4-604 - FUNDS TRANSFER — DEFINITIONS.
Section 28-4-605 - OTHER DEFINITIONS.
Section 28-4-606 - TIME PAYMENT ORDER IS RECEIVED.
Section 28-4-607 - FEDERAL RESERVE REGULATIONS AND OPERATING CIRCULARS.
Section 28-4-608 - RELATIONSHIP TO ELECTRONIC FUND TRANSFER ACT.
Section 28-4-609 - SECURITY PROCEDURE.
Section 28-4-610 - AUTHORIZED AND VERIFIED PAYMENT ORDERS.
Section 28-4-611 - UNENFORCEABILITY OF CERTAIN VERIFIED PAYMENT ORDERS.
Section 28-4-613 - ERRONEOUS PAYMENT ORDERS.
Section 28-4-615 - MISDESCRIPTION OF BENEFICIARY.
Section 28-4-616 - MISDESCRIPTION OF INTERMEDIARY BANK OR BENEFICIARY’S BANK.
Section 28-4-617 - ACCEPTANCE OF PAYMENT ORDER.
Section 28-4-618 - REJECTION OF PAYMENT ORDER.
Section 28-4-619 - CANCELLATION AND AMENDMENT OF PAYMENT ORDER.
Section 28-4-620 - LIABILITY AND DUTY OF RECEIVING BANK REGARDING UNACCEPTED PAYMENT ORDER.
Section 28-4-621 - EXECUTION AND EXECUTION DATE.
Section 28-4-622 - OBLIGATIONS OF RECEIVING BANK IN EXECUTION OF PAYMENT ORDER.
Section 28-4-623 - ERRONEOUS EXECUTION OF PAYMENT ORDER.
Section 28-4-624 - DUTY OF SENDER TO REPORT ERRONEOUSLY EXECUTED PAYMENT ORDER.
Section 28-4-625 - LIABILITY FOR LATE OR IMPROPER EXECUTION OR FAILURE TO EXECUTE PAYMENT ORDER.
Section 28-4-626 - PAYMENT DATE.
Section 28-4-627 - OBLIGATION OF SENDER TO PAY RECEIVING BANK.
Section 28-4-628 - PAYMENT BY SENDER TO RECEIVING BANK.
Section 28-4-629 - OBLIGATION OF BENEFICIARY’S BANK TO PAY AND GIVE NOTICE TO BENEFICIARY.
Section 28-4-630 - PAYMENT BY BENEFICIARY’S BANK TO BENEFICIARY.
Section 28-4-631 - PAYMENT BY ORIGINATOR TO BENEFICIARY — DISCHARGE OF UNDERLYING OBLIGATION.
Section 28-4-632 - VARIATION BY AGREEMENT AND EFFECT OF FUNDS-TRANSFER SYSTEM RULE.
Section 28-4-633 - CREDITOR PROCESS SERVED ON RECEIVING BANK — SETOFF BY BENEFICIARY’S BANK.
Section 28-4-634 - INJUNCTION OR RESTRAINING ORDER WITH RESPECT TO FUNDS TRANSFER.
Section 28-4-636 - PRECLUSION OF OBJECTION TO DEBIT OF CUSTOMER’S ACCOUNT.