Minnesota Legislature
Office of the Revisor of Statutes
2006 Minnesota Statutes
This is an historical version of this statute chapter. Also view the most recent published version.
336.4A-305 LIABILITY FOR LATE OR IMPROPER EXECUTION OR FAILURE TO
EXECUTE PAYMENT ORDER.
(a) If a funds transfer is completed but execution of a payment order by the receiving bank in
breach of section 336.4A-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 (c), additional damages
are not recoverable.
(b) If execution of a payment order by a receiving bank in breach of section 336.4A-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 (a), resulting from the improper execution. Except as provided in subsection (c),
additional damages are not recoverable.
(c) In addition to the amounts payable under subsections (a) and (b), damages, including
consequential damages, are recoverable to the extent provided in an express written agreement of
the receiving bank.
(d) 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.
(e) Reasonable attorney's fees are recoverable if demand for compensation under subsection
(a) or (b) is made and refused before an action is brought on the claim. If a claim is made for
breach of an agreement under subsection (d) and the agreement does not provide for damages,
reasonable attorney's fees are recoverable if demand for compensation under subsection (d) is
made and refused before an action is brought on the claim.
(f) Except as stated in this section, the liability of a receiving bank under subsections (a) and
(b) may not be varied by agreement.
History: 1990 c 582 art 1 s 25
EXECUTE PAYMENT ORDER.
(a) If a funds transfer is completed but execution of a payment order by the receiving bank in
breach of section 336.4A-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 (c), additional damages
are not recoverable.
(b) If execution of a payment order by a receiving bank in breach of section 336.4A-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 (a), resulting from the improper execution. Except as provided in subsection (c),
additional damages are not recoverable.
(c) In addition to the amounts payable under subsections (a) and (b), damages, including
consequential damages, are recoverable to the extent provided in an express written agreement of
the receiving bank.
(d) 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.
(e) Reasonable attorney's fees are recoverable if demand for compensation under subsection
(a) or (b) is made and refused before an action is brought on the claim. If a claim is made for
breach of an agreement under subsection (d) and the agreement does not provide for damages,
reasonable attorney's fees are recoverable if demand for compensation under subsection (d) is
made and refused before an action is brought on the claim.
(f) Except as stated in this section, the liability of a receiving bank under subsections (a) and
(b) may not be varied by agreement.
History: 1990 c 582 art 1 s 25
Official Publication of the State of Minnesota
Revisor of Statutes