                                 CODE OF VIRGINIA

LIABILITY FOR LATE OR IMPROPER EXECUTION OR FAILURE TO EXECUTE PAYMENT ORDER (§
8.4A-305)

a. If a funds transfer is completed but execution of a payment order by the
receiving bank in breach of &#xA7; 8.4A-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) of this section, additional
damages are not recoverable.

b. If execution of a payment order by a receiving bank in breach of &#xA7;
8.4A-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) of this section, resulting from the improper
execution. Except as provided in subsection (c) of this section, additional
damages are not recoverable.

c. In addition to the amounts payable under subsections (a) and (b) of this
section, damages, including consequential damages, are recoverable to the extent
provided in an express agreement of the receiving bank, evidenced by a record.

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
agreement of the receiving bank, evidenced by a record, but are not otherwise
recoverable.

e. Reasonable attorney&#8217;s fees are recoverable if demand for compensation
under subsection (a) or (b) 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 (d) of this section, and the agreement does not provide for damages,
reasonable attorney&#8217;s fees are recoverable if demand for compensation
under subsection (d) of this section, 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) of this section may not be varied by agreement.

HISTORY: 1990, c. 9; 2024, c. 652.