(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.
(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 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.
(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.
