1. 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.
2. 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.
3. 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.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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