(a) Damages. In connection with its handling of a payment order under this subpart,
a Federal Reserve Bank shall not be liable to a sender, receiving
bank, beneficiary, or other Federal Reserve Bank, governed by this
subpart, for any damages other than those payable under article 4A.
A Federal Reserve Bank shall not agree to be liable to a sender, receiving
bank, beneficiary, or other Federal Reserve Bank for consequential
damages under section 4A-305(d) of article 4A.
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(b) Payment of compensation.
(1) A Federal Reserve Bank shall satisfy
its obligation, or that of another Federal Reserve Bank, to pay compensation
in the form of interest under article 4A by paying such compensation
in the form of interest to a sender, receiving bank, beneficiary, or another
party to the funds transfer that is entitled to such payment in an
amount that is calculated in accordance with section 4A-506 of article
4A.
(2) If the sender or receiving
bank that is the recipient of the payment of compensation is not the
party entitled to compensation under article 4A, the sender or receiving
bank shall pass through the benefit of the compensation by making
an interest payment, as of the day the compensation was paid by the
Federal Reserve Bank, to the party entitled to compensation. The interest
payment that is made to the party entitled to compensation shall not
be less than the value of the compensation that was paid by the Federal
Reserve Bank to the sender or receiving bank. The party entitled to
compensation may agree to accept compensation in a form other than
a direct interest payment, provided that such an alternative form
of compensation is not less than the value of the interest payment
that otherwise would be made.
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(c) Nonwaiver of right of recovery. Nothing
in this subpart or any operating circular issued hereunder shall constitute,
or be construed as constituting, a waiver by a Federal Reserve Bank
of a cause of action for recovery under any applicable law of mistake
and restitution.
