70A-4-209 - Encoding and retention warranties.
70A-4-209. Encoding and retention warranties.
(1) A person who encodes information on or with respect to an item after issue warrantsto any subsequent collecting bank and to the payor bank or other payor that the information iscorrectly encoded. If the customer of a depositary bank encodes, that bank also makes thewarranty.
(2) A person who undertakes to retain an item pursuant to an agreement for electronicpresentment warrants to any subsequent collecting bank and to the payor bank or other payor thatretention and presentment of the item comply with the agreement. If a customer of a depositarybank 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 ingood faith may recover from the warrantor as damages for breach of warranty an amount equal tothe loss suffered as a result of the breach, plus expenses and loss of interest incurred as a result ofthe breach.
Repealed and Re-enacted by Chapter 237, 1993 General Session