§ 34.1-3-417 — Presentment warranties

Wyoming § 34.1-3-417

• Jurisdiction: Wyoming
• Title 34.1: Uniform Commercial Code
• Art. 3: NEGOTIABLE INSTRUMENTS

Text

(a) If an unaccepted draft is presented to the drawee for
payment or acceptance and the drawee pays or accepts the draft,
(1) the person obtaining payment or acceptance, at the time of
presentment, and (2) a previous transferor of the draft, at the
time of transfer, warrant to the drawee making payment or
accepting the draft in good faith that:
(i) The warrantor is, or was, at the time the
warrantor transferred the draft, a person entitled to enforce
the draft or authorized to obtain payment or acceptance of the
draft on behalf of a person entitled to enforce the draft;
(ii) The draft has not been altered; and
(iii) The warrantor has no knowledge that the
signature of the drawer of the draft is unauthorized.
(b) A drawee making payment may recover from any warrantor
damages for breach of warranty equal to the amount paid by the
drawee less the amount the drawee received or is entitled to
receive from the drawer because of the payment. In addition, the
drawee is entitled to compensation for expenses and loss of
interest resulting from the breach. The right of the drawee to
recover damages under this subsection is not affected by any
failure of the drawee to exercise ordinary care in making
payment. If the drawee accepts the draft, breach of warranty is
a defense to the obligation of the acceptor. If the acceptor
makes payment with respect to the draft, the acceptor is
entitled to recover from any warrantor for breach of warranty
the amounts stated in this subsection.
(c) If a drawee asserts a claim for breach of warranty
under subsection (a) based on an unauthorized indorsement of the
draft or an alteration of the draft, the warrantor may defend by
proving that the indorsement is effective under section
34.1-3-404 or 34.1-3-405 or the drawer is precluded under
section 34.1-3-406 or 34.1-4-406 from asserting against the
drawee the unauthorized indorsement or alteration.
(d) If (1) a dishonored draft is presented for payment to
the drawer or an indorser or (2) any other instrument is
presented for payment to a party obliged to pay the instrument,
and (3) payment is received, the following rules apply:
(i) The person obtaining payment and a prior
transferor of the instrument warrant to the person making
payment in good faith that the warrantor is, or was, at the time
the warrantor transferred the instrument, a person entitled to
enforce the instrument or authorized to obtain payment on behalf
of a person entitled to enforce the instrument;
(ii) The person making payment may recover from any
warrantor for breach of warranty an amount equal to the amount
paid plus expenses and loss of interest resulting from the
breach.
(e) The warranties stated in subsections (a) and (d)
cannot be disclaimed with respect to checks. Unless notice of a
claim for breach of warranty is given to the warrantor within
thirty (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 (b) or (d) is discharged to the
extent of any loss caused by the delay in giving notice of the
claim.
(f) A cause of action for breach of warranty under this
section accrues when the claimant has reason to know of the
breach.