{"data":{"id":"us-ky/krs-355.4a-305","jurisdiction":"us-ky","citation":"KRS 355.4A-305","heading":"Liability for late or improper execution or failure to execute payment","body":"order.\n(1) If a funds transfer is completed but execution of a payment order by the receiving\nbank in breach of KRS 355.4A -302 results in delay in payment to the beneficiary,\nthe bank is obliged to pay interest to either the originator or the beneficiary of the\nfunds transfer for the period of delay caused by the improper execution. Except as\nprovided in subsection (3) of this section, additional damages are not recoverable.\n(2) If execution of a payment order by a receiving bank in breach of KRS 355.4A -302\nresults in noncompletion of the funds transfer, failure to use an intermediary bank\ndesignated by the originator, or issuance of a payment order that does not co mply\nwith the terms of the payment order of the originator, the bank is liable to the\noriginator for its expenses in the funds transfer and for incidental expenses and\ninterest losses, to the extent not covered by subsection (1) of this section, resulting\nfrom the improper execution. Except as provided in subsection (3) of this section,\nadditional damages are not recoverable.\n(3) In addition to the amounts payable under subsections (1) and (2) of this section,\ndamages, including consequential damages, are r ecoverable to the extent provided\nin an express agreement of the receiving bank, evidenced by a record.\n(4) If a receiving bank fails to execute a payment order it was obliged by express\nagreement to execute, the receiving bank is liable to the sender for its expenses in\nthe transaction and for incidental expenses and interest losses resulting from the\nfailure to execute. Additional damages, including consequential damages, are\nrecoverable to the extent provided in an express agreement of the receiving bank ,\nevidenced by a record, but are not otherwise recoverable.\n(5) (a) Reasonable attorney's fees are recoverable if demand for compensation under\nsubsection (1) or (2) of this section is made and refused before an action is\nbrought on the claim.\n(b) If a cla im is made for breach of an agreement under subsection (4) of this\nsection and the agreement does not provide for damages, reasonable attorney's\nfees are recoverable if demand for compensation under subsection (4) of this\nsection is made and refused before an action is brought on the claim.\n(6) Except as stated in this section, the liability of a receiving bank under subsections\n(1) and (2) of this section may not be varied by agreement.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55658","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:45Z","sha256":"08f2d45e5a012d34bba599b1ffa1f4b3d4a0539667f38a207bd194390afbb700","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.4a-304","next":"us-ky/krs-355.4a-401"},"notice":"GroundRules: Original legal text. Not legal advice."}