§ 554.12305

554.12305 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 554.12302 results in delay in payment to the beneficiary, the bankis obligated to pay interest to either the originator or the beneficiary of the funds transfer forthe 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 554.12302 results in noncompletion of the funds transfer, failure to use an intermediary bank designatedby the originator, or issuance of a payment order that does not comply with the terms ofthe payment order of the originator, the bank is liable to the originator for the originator’sexpenses in the funds transfer and for incidental expenses and interest losses, to the extentnot covered by subsection 1, resulting from the improper execution. Except as provided insubsection 3, additional damages are not recoverable. 3. In addition to the amounts payable under subsections 1 and 2, damages, including consequential damages,

proper execution. Except as provided insubsection 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 writtenagreement of the receiving bank. 4. If a receiving bank fails to execute a payment order that the receiving bank was obligated by express agreement to execute, the receiving bank is liable to the sender forthe sender’s expenses in the transaction and for incidental expenses and interest lossesresulting from the failure to execute. Additional damages, including consequential damages,are recoverable to the extent provided in an express written agreement of the receivingbank, 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 ismade for breach of an agreement under subsection 4 and the agreement does not providefor damages, reasonable attorney’s fees are recoverable if demand for compensation undersubsection 4 is made and refused before an action is brought on the claim. 6.

and the agreement does not providefor damages, reasonable attorney’s fees are recoverable if demand for compensation undersubsection 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. 92 Acts, ch 1146, §25 Sat Dec 23 11:02:56 2023 Iowa Code 2024, Section 554.12305 (25, 0)