Browse Arkansas Code titles and sections

12 U.S.C. § 5009 — Measure of damages

Federal law — U.S. Code and appendices · legal_authorities

12 U.S.C. § 5009 — Measure of damages

**(a) Liability** (1) **In general** — Except as provided in [section 5005 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5005&num=0&edition=prelim), any person who, in connection with a substitute check, breaches any warranty under this chapter or fails to comply with any requirement imposed by, or regulation prescribed pursuant to, this chapter with respect to any other person shall be liable to such person in an amount equal to the sum of— (A) the lesser of— (i) the amount of the loss suffered by the other person as a result of the breach or failure; or (ii) the amount of the substitute check; and (B) interest and expenses (including costs and reasonable attorney’s fees and other expenses of representation) related to the substitute check. (2) **Offset of recredits** — The amount of damages any person receives under paragraph (1), if any, shall be reduced by the amount, if any, that the claimant receives and retains as a recredit under section 5006 or 5007 of this title. **(b) Comparative negligence** (1) **In general** — If a person incurs damages that resulted in whole or in part from the negligence or failure of that person to act in good faith, then the amount of any liability due to that person under subsection (a) shall be reduced in proportion to the amount of negligence or bad faith attributable to that person. (2) **Rule of construction** — Nothing in this subsection reduces the rights of a consumer or any other person under the Uniform Commercial Code or other applicable provision of Federal or State law.

Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 5009

Stored review status: release_metadata_unconfirmed. A text match is a research starting point; applicability is not established.

Original supplied file — preserved unchanged

Download original Markdown file

File SHA-256: 3735e618418092de75675dc990c91ddfdad221892c1f0054b6f7081b8a21dfa4. The original may include catalog metadata, neighboring provisions, or embedded records outside this collection's scope. Search shows only the selected federal record. Historical editions and unverified snapshots are not a statement of current law.

Authority boundary: historical or unconfirmed source not current law verified.

Open the recorded source website ↗

Record provenance

Stable record: federal_law:legal_authorities:record_usc_9057d40f4b81f66e7cb92845
Source file: Laws/federal/codes/united-states-code/title-12/section-5009-measure-of-damages--da3773ca60.md
Pages: Not recorded – Not recorded
Passage SHA-256: bb4c01091e60b01a396f79db75fe70bc8f9a3bd84ea928d86facfb6310629213

Source location: Title 12, Chapter 50, § 5009; chapter-050-check-truncation.md

Stored source content

Cross-references

Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.

Federal law — U.S. Code and appendices · legal_authorities

12 U.S.C. § 5001 — Findings; purposes

**(a) Findings** The Congress finds as follows: (1) In the Expedited Funds Availability Act [[12 U.S.C. 4001](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4001&num=0&edition=prelim) et seq.], enacted on August 10, 1987, the Congress directed the Board of Governors of the Federal Reserve System to consider establishing regulations requiring Federal reserve banks and depository institutions to provide for check truncation, in order to improve the check processing system. (2) In that same Act, the Congress— (A) provided the Board of Governors of the Federal Reserve System with full authority to regulate all aspects of the payment system, including the receipt, payment, collection, and clearing of checks, and related functions of the payment system pertaining to checks; and (B) directed that the exercise of such authority by the Board superseded any State law, including the Uniform Commercial Code, as in effect in any State. (3) Check truncation is no less desirable in 2003 for both financial service customers and the financial services industry, to reduce costs, improve efficiency in check collections, and expedite funds availability for customers than it was over 15 years ago when Congress first directed the Board to consider establishing such a process. **(b) Purposes** The purposes of this chapter are as follows: (1) To facilitate check truncation by authorizing substitute checks. (2) To foster innovation in the check collection system without mandating receipt of checks in electronic form. (3) To improve the overall efficiency of the Nation’s payments system.

Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 5001

Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.

Federal law — U.S. Code and appendices · legal_authorities

12 U.S.C. § 5005 — Indemnity

**(a) Indemnity** A reconverting bank and each bank that subsequently transfers, presents, or returns a substitute check in any electronic or paper form, and receives consideration for such transfer, presentment, or return shall indemnify the transferee, any subsequent collecting or returning bank, the depositary bank, the drawee, the drawer, the payee, the depositor, and any endorser, up to the amount described in subsections (b) and (c), as applicable, to the extent of any loss incurred by any recipient of a substitute check if that loss occurred due to the receipt of a substitute check instead of the original check. **(b) Indemnity amount** (1) **Amount in event of breach of warranty** — The amount of the indemnity under subsection (a) shall be the amount of any loss (including costs and reasonable attorney’s fees and other expenses of representation) proximately caused by a breach of a warranty provided under [section 5004 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5004&num=0&edition=prelim). (2) **Amount in absence of breach of warranty** — In the absence of a breach of a warranty provided under [section 5004 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5004&num=0&edition=prelim), the amount of the indemnity under subsection (a) shall be the sum of— (A) the amount of any loss, up to the amount of the substitute check; and (B) interest and expenses (including costs and reasonable attorney’s fees and other expenses of representation). **(c) Comparative negligence** (1) **In general** — If a loss described in subsection (a) results in whole or in part from the negligence or failure to act in good faith on the part of an indemnified party, then that party’s indemnif

Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 5005

Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.

Federal law — U.S. Code and appendices · legal_authorities

12 U.S.C. § 5009 — Measure of damages

Page 1782 TITLE 12—BANKS AND BANKING § 5009 § 5009. Measure of damages (a) Liability (1) In general Except as provided in section 5005 of this title, any person who, in connection with a substitute check, breaches any warranty under this chapter or fails to comply with any requirement imposed by, or regulation pre- scribed pursuant to, this chapter with respect to any other person shall be liable to such per- son in an amount equal to the sum of— (A) the lesser of— (i) the amount of the loss suffered by the other person as a result of the breach or failure; or (ii) the amount of the substitute check; and (B) interest and expenses (including costs and reasonable attorney’s fees and other ex- penses of representation) related to the sub- stitute check. (2) Offset of recredits The amount of damages any person receives under paragraph (1), if any, shall be reduced by the amount, if any, that the claimant receives and retains as a recredit under section 5006 or 5007 of this title. (b) Comparative negligence (1) In general If a person incurs damages that resulted in whole or in part from the negligence or failure of that person to act in good faith, then the amount of any liability due to that person under subsection (a) shall be reduced in pro- portion to the amount of negligence or bad faith attributable to that person. (2) Rule of construction Nothing in this subsection reduces the rights of a consumer or any other person under the Uniform Commercial Code or other applicable provision of Federal or State law. (Pub. L. 108–100, § 10, Oct. 28, 2003, 117 Stat. 1188.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (a)(1), was in the original ‘‘this Act’’, meaning Pub. L. 108–100, Oct. 28, 2003, 117 Stat. 1177, w

Source: Supplied 2024 U.S. Code historical extraction · 12 U.S.C. § 5009

Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.