§ 4-4-209 — Encoding and retention warranties

Colorado § 4-4-209

• Jurisdiction: Colorado
• Title 04: Uniform
• Art.: Bank Deposits and Collections

Text

(a) A person who encodes
information on or with respect to an item after issue warrants to any subsequent
collecting bank and to the payor bank or other payor that the information is
correctly encoded. If the customer of a depositary bank encodes, that bank also
makes the warranty.

(b) A person who undertakes to retain an item pursuant to an agreement for
electronic presentment warrants to any subsequent collecting bank and to the
payor bank or other payor that retention and presentment of the item comply with
the agreement. If a customer of a depositary bank undertakes to retain an item, that
bank also makes this warranty.

(c) A person to whom warranties are made under this section and who took
the item in good faith may recover from the warrantor as damages for breach of
warranty an amount equal to the loss suffered as a result of the breach, plus
expenses and loss of interest incurred as a result of the breach.

Legislative History

Source: L. 94: Entire article amended with relocations, p. 891, � 2, effective January 1, 1995.