§ 554.4209 — Encoding and retention warranties

Iowa § 554.4209

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 554: UNIFORM COMMERCIAL CODE

Text

1. 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.
2. A person who undertakes to retain an item pursuant to an agreement for electronic
presentmentwarrantstoanysubsequentcollectingbankandtothepayorbankorotherpayor
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.
3. 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.