Utah § 70A-3-416 Transfer warranties.

Utah Statutes

§ 70A-3-416 — Transfer warranties.

Utah § 70A-3-416

Title 70AUniform Commercial Code

Ch. 70A-3Uniform Commercial Code - Negotiable Instruments

Part 70A-3-4Liability of Parties

This text of Utah § 70A-3-416 (Transfer warranties.) is published on Counsel Stack Legal Research, covering Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Utah Code Ann. § 70A-3-416 (2026).

Text

(1)A person who transfers an instrument for consideration warrants to the transferee and, if the transfer is by indorsement, to any subsequent transferee that:

(1)(a) the warrantor is a person entitled to enforce the instrument;

(1)(b) all signatures on the instrument are authentic and authorized;

(1)(c) the instrument has not been altered;

(1)(d) the instrument is not subject to a defense or claim in recoupment of any party which can be asserted against the warrantor;

(1)(e) the warrantor has no knowledge of any insolvency proceeding commenced with respect to the maker or acceptor or, in the case of an unaccepted draft, the drawer; and

(1)(f) if the instrument is a demand draft, creation of the instrument according to the terms on its face was authorized by the person identified as draw

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(1) A person who transfers an instrument for consideration warrants to the transferee and, if the transfer is by indorsement, to any subsequent transferee that:

(1)(a) the warrantor is a person entitled to enforce the instrument;
(1)(b) all signatures on the instrument are authentic and authorized;
(1)(c) the instrument has not been altered;
(1)(d) the instrument is not subject to a defense or claim in recoupment of any party which can be asserted against the warrantor;
(1)(e) the warrantor has no knowledge of any insolvency proceeding commenced with respect to the maker or acceptor or, in the case of an unaccepted draft, the drawer; and
(1)(f) if the instrument is a demand draft, creation of the instrument according to the terms on its face was authorized by the person identified as drawer.
(2) A person to whom the warranties under Subsection (1) are made and who took the instrument 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, but not more than the amount of the instrument plus expenses and loss of interest incurred as a result of the breach.
(3) The warranties stated in Subsection (1) cannot be disclaimed with respect to checks. Unless notice of a claim for breach of warranty is given to the warrantor within 30 days after the claimant has reason to know of the breach and the identity of the warrantor, the liability of the warrantor under Subsection (2) is discharged to the extent of any loss caused by the delay in giving notice of the claim.
(4) A cause of action for breach of warranty under this section accrues when the claimant has reason to know of the breach.
(5) If the warranty in Subsection (1)(f) is not given by a transferor under applicable conflict of law rules, the warranty is not given to that transferor when that transferor is a transferee.