Wyoming § 34.1-4-207 Transfer warranties

Wyoming Statutes

§ 34.1-4-207 — Transfer warranties

Wyoming § 34.1-4-207

Title 34.1Uniform Commercial Code

Art. 4BANK DEPOSITS AND COLLECTIONS

This text of Wyoming § 34.1-4-207 (Transfer warranties) is published on Counsel Stack Legal Research, covering Wyoming primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Wyo. Stat. Ann. § 34.1-4-207 (2026).

Text

(a)A customer or collecting bank that transfers an item and receives a settlement or other consideration warrants to the transferee and to any subsequent collecting bank that:

(i)The warrantor is a person entitled to enforce the item;

(ii)All signatures on the item are authentic and authorized;

(iii)The item has not been altered;

(iv)The item is not subject to a defense or claim in recoupment (section 34.1-3-305(a)) of any party that can be asserted against the warrantor; and

(v)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.

(b)If an item is dishonored, a customer or collecting bank transferring the item and receiving settlement or other consideration is obliged to pay th

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(a) A customer or collecting bank that transfers an item
and receives a settlement or other consideration warrants to the
transferee and to any subsequent collecting bank that:
(i) The warrantor is a person entitled to enforce the
item;
(ii) All signatures on the item are authentic and
authorized;
(iii) The item has not been altered;
(iv) The item is not subject to a defense or claim in
recoupment (section 34.1-3-305(a)) of any party that can be
asserted against the warrantor; and
(v) 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.
(b) If an item is dishonored, a customer or collecting
bank transferring the item and receiving settlement or other
consideration is obliged to pay the amount due on the item (1)
according to the terms of the item at the time it was
transferred, or (2) if the transfer was of an incomplete item,
according to its terms when completed as stated in sections
34.1-3-115 and 34.1-3-407. The obligation of a transferor is
owed to the transferee and to any subsequent collecting bank
that takes the item in good faith. A transferor cannot disclaim
its obligation under this subsection by an indorsement stating
that it is made "without recourse" or otherwise disclaiming
liability.
(c) A person to whom the warranties under subsection (a)
are made 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, but not more
than the amount of the item plus expenses and loss of interest
incurred as a result of the breach.
(d) The warranties stated in subsection (a) 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 warrantor is discharged to the
extent of any loss caused by the delay in giving notice of the
claim.
(e) A cause of action for breach of warranty under this
section accrues when the claimant has reason to know of the
breach.