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12 U.S.C. § 4010 — Civil liability
Federal law — U.S. Code and appendices · legal_authorities
**(a) Civil liability** Except as otherwise provided in this section, any depository institution which fails to comply with any requirement imposed under this chapter or any regulation prescribed under this chapter with respect to any person other than another depository institution is liable to such person in an amount equal to the sum of—
(1) any actual damage sustained by such person as a result of the failure;
(2)
(A) in the case of an individual action, such additional amount as the court may allow, except that the liability under this subparagraph shall not be less than $100 nor greater than $1,000; or
(B) in the case of a class action, such amount as the court may allow, except that—
(i) as to each member of the class, no minimum recovery shall be applicable; and
(ii) the total recovery under this subparagraph in any class action or series of class actions arising out of the same failure to comply by the same depository institution shall not be more than the lesser of $500,000 or 1 percent of the net worth of the depository institution involved; and
(3) in the case of any successful action to enforce the foregoing liability, the costs of the action, together with a reasonable attorney’s fee as determined by the court.
**(b) Class action awards** In determining the amount of any award in any class action, the court shall consider, among other relevant factors—
(1) the amount of any actual damages awarded;
(2) the frequency and persistence of failures of compliance;
(3) the resources of the depository institution;
(4) the number of persons adversely affected; and
(5) the extent to which the failure of compliance was intentional.
**(c) Bona fide errors**
(1) **General rule** — A depository institution may not be held liable in any action b
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Source location: Title 12, Chapter 41, § 4010; chapter-041-expedited-funds-availability.md
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**(a) Civil liability** Except as otherwise provided in this section, any depository institution which fails to comply with any requirement imposed under this chapter or any regulation prescribed under this chapter with respect to any person other than another depository institution is liable to such person in an amount equal to the sum of—
(1) any actual damage sustained by such person as a result of the failure;
(2)
(A) in the case of an individual action, such additional amount as the court may allow, except that the liability under this subparagraph shall not be less than $100 nor greater than $1,000; or
(B) in the case of a class action, such amount as the court may allow, except that—
(i) as to each member of the class, no minimum recovery shall be applicable; and
(ii) the total recovery under this subparagraph in any class action or series of class actions arising out of the same failure to comply by the same depository institution shall not be more than the lesser of $500,000 or 1 percent of the net worth of the depository institution involved; and
(3) in the case of any successful action to enforce the foregoing liability, the costs of the action, together with a reasonable attorney’s fee as determined by the court.
**(b) Class action awards** In determining the amount of any award in any class action, the court shall consider, among other relevant factors—
(1) the amount of any actual damages awarded;
(2) the frequency and persistence of failures of compliance;
(3) the resources of the depository institution;
(4) the number of persons adversely affected; and
(5) the extent to which the failure of compliance was intentional.
**(c) Bona fide errors**
(1) **General rule** — A depository institution may not be held liable in any action brought under this section for a violation of this chapter if the depository institution demonstrates by a preponderance of the evidence that the violation was not intentional and resulted from a bona fide error, notwithstanding the maintenance of procedures reasonably adapted to avoid any such error.
(2) **Examples** — Examples of a bona fide error include clerical, calculation, computer malfunction and programming, and printing errors, except that an error of legal judgment with respect to a depository institution’s obligation under this chapter is not a bona fide error.
**(d) Jurisdiction** Any action under this section may be brought in any United States district court, or in any other court of competent jurisdiction, within one year after the date of the occurrence of the violation involved.
**(e) Reliance on Board rulings** No provision of this section imposing any liability shall apply to any act done or omitted in good faith in conformity with any rule, regulation, or interpretation thereof by the Board of Governors of the Federal Reserve System, notwithstanding the fact that after such act or omission has occurred, such rule, regulation, or interpretation is amended, rescinded, or determined by judicial or other authority to be invalid for any reason.
**(f) Authority to establish rules regarding losses and liability among depository institutions** The Board is authorized to impose on or allocate among depository institutions the risks of loss and liability in connection with any aspect of the payment system, including the receipt, payment, collection, or clearing of checks, and any related function of the payment system with respect to checks. Liability under this subsection shall not exceed the amount of the check giving rise to the loss or liability, and, where there is bad faith, other damages, if any, suffered as a proximate consequence of any act or omission giving rise to the loss or liability.
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Federal law — U.S. Code and appendices · legal_authorities
For purposes of this chapter—
(1) **Account** — The term “account” means a demand deposit account or other similar transaction account at a depository institution.
(2) **Board** — The term “Board” means the Board of Governors of the Federal Reserve System.
(3) **Business day** — The term “business day” means any day other than a Saturday, Sunday, or legal holiday.
(4) **Cash** — The term “cash” means United States coins and currency, including Federal Reserve notes.
(5) **Cashier’s check** — The term “cashier’s check” means any check which—
(A) is drawn on a depository institution;
(B) is signed by an officer or employee of such depository institution; and
(C) is a direct obligation of such depository institution.
(6) **Certified check** — The term “certified check” means any check with respect to which a depository institution certifies that—
(A) the signature on the check is genuine; and
(B) such depository institution has set aside funds which—
(i) are equal to the amount of the check; and
(ii) will be used only to pay such check.
(7) **Check** — The term “check” means any negotiable demand draft drawn on or payable through an office of a depository institution located in the United States. Such term does not include noncash items.
(8) **Check clearinghouse association** — The term “check clearinghouse association” means any arrangement by which participant depository institutions exchange deposited checks on a local basis, including an entire metropolitan area, without using the check processing facilities of the Federal Reserve System.
(9) **Check processing region** — The term “check processing region” means the geographical area served by a Federal Reserve bank check processing center or such larger area as the Board may prescrib
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 4001
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Federal law — U.S. Code and appendices · legal_authorities
Page 1591
TITLE 12—BANKS AND BANKING
§ 4010
is classified generally to chapter 14 (§ 1751 et seq.) of
this title. For complete classification of this Act to the
Code, see section 1751 of this title and Tables.
AMENDMENTS
1991—Subsec. (a). Pub. L. 102–242, § 212(h)(2), inserted
at end ‘‘The terms used in paragraph (1) that are not
defined in this chapter or otherwise defined in section
3(s) of the Federal Deposit Insurance Act (12 U.S.C.
1813(s)) shall have the meaning given to them in section
1(b) of the International Banking Act of 1978 (12 U.S.C.
3101).’’
Subsec. (a)(1). Pub. L. 102–242, § 212(h)(1), added par. (1)
and struck out former par. (1) which read as follows:
‘‘section 8 of the Federal Deposit Insurance Act in the
case of—
‘‘(A) national banks, by the Comptroller of the Cur-
rency;
‘‘(B) member banks of the Federal Reserve System
(other than national banks), by the Board of Gov-
ernors of the Federal Reserve System; and
‘‘(C) banks insured by the Federal Deposit Insur-
ance Corporation (other than members of the Federal
Reserve System), by the Board of Directors of the
Federal Deposit Insurance Corporation;’’.
1989—Subsec. (a)(2). Pub. L. 101–73 amended par. (2)
generally. Prior to amendment, par. (2) read as follows:
‘‘section 5(d) of the Home Owners’ Loan Act of 1933, sec-
tion 407 of the National Housing Act, and section 17 of
the Federal Home Loan Bank Act, by the Federal Home
Loan Bank Board (acting directly or through the Fed-
eral Savings and Loan Insurance Corporation), in the
case of any institution subject to any of those provi-
sions; and’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective Sept. 1, 1988, see section 613(b) of
Pub. L. 100–86, set out as a note under section 4001 of
this title.
§
Source: Supplied 2024 U.S. Code historical extraction · 12 U.S.C. § 4010
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