---
kind: "section"
citation: "12 U.S.C. § 5009"
title: "12"
title_heading: "Banks and Banking"
number: "5009"
heading: "Measure of damages"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5009"
units:
  - "Chapter 50 — Check Truncation"
---

# §5009. Measure of damages

- (a) **Liability—**
  - (1) **In general—** Except as provided in [section 5005 of this title](/usc/12/5005.md), any [person](/usc/12/5002.md?p=14) who, in connection with a [substitute check](/usc/12/5002.md?p=16), 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](/usc/12/5002.md?p=14) shall be liable to such [person](/usc/12/5002.md?p=14) in an amount equal to the sum of—
    - (A) the lesser of—
      - (i) the amount of the loss suffered by the other [person](/usc/12/5002.md?p=14) as a result of the breach or failure; or
      - (ii) the amount of the [substitute check](/usc/12/5002.md?p=16); and
    - (B) interest and expenses (including costs and reasonable attorney’s fees and other expenses of representation) related to the [substitute check](/usc/12/5002.md?p=16).
  - (2) **Offset of recredits—** The amount of damages any [person](/usc/12/5002.md?p=14) receives under [paragraph (1)](#a-1), if any, shall be reduced by the amount, if any, that the claimant receives and retains as a recredit under section [5006](/usc/12/5006.md) or [5007](/usc/12/5007.md) of this title.
- (b) **Comparative negligence—**
  - (1) **In general—** If a [person](/usc/12/5002.md?p=14) incurs damages that resulted in whole or in part from the negligence or failure of that [person](/usc/12/5002.md?p=14) to act in good faith, then the amount of any liability due to that [person](/usc/12/5002.md?p=14) under [subsection (a)](#a) shall be reduced in proportion to the amount of negligence or bad faith attributable to that [person](/usc/12/5002.md?p=14).
  - (2) **Rule of construction—** Nothing in this subsection reduces the rights of a [consumer](/usc/12/5002.md?p=7) or any other [person](/usc/12/5002.md?p=14) under the [Uniform Commercial Code](/usc/12/5002.md?p=19) or other applicable provision of Federal or [State](/usc/12/5002.md?p=17) law.

## Source credit

(Pub. L. 108–100, § 10, Oct. 28, 2003, 117 Stat. 1188.)

## Notes

### 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, which is classified generally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 5001 of this title and Tables.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective at the end of the 12-month period beginning on Oct. 28, 2003, see section 20 of Pub. L. 108–100, set out as a note under section 5001 of this title.