New Jersey § 12a:4a-305

§ 12a:4a-305.

(1) If a funds transfer is completed but execution of a payment order by the receiving

bank in breach of section 12A: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 (3), additional damages are not recoverable. (2) If execution of a payment order by a receiving bank in breach of section 12A: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 (1), resulting from the

improper execution. Except as provided in subsection (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 written

agreement of the receiving bank. (4) 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. (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 is made for breach of an agreement under subsection (4) and the agreement

does not provide for damages, reasonable attorney's fees are recoverable if demand

for compensation under subsection (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.