§ 26-1-4-209 — Encoding and retention warranties

Indiana § 26-1-4-209

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 4: 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.
Formerly: Acts 1963, c.317, s.4-209. As amended by
P.L.152-1986, SEC.217; P.L.222-1993, SEC.25.