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(810 ILCS 5/4A-305) (from Ch. 26, par. 4A-305)
Sec. 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 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 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.
(Source: P.A. 86-1291.)
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