(A) A person who transfers an instrument for consideration warrants all of the following
to the transferee and, if the transfer is by indorsement, to any subsequent transferee:
(1) The warrantor is a person entitled to enforce the instrument.
(2) All signatures on the instrument are authentic and authorized.
(3) The instrument has not been altered.
(4) The instrument is not subject to a defense or claim in recoupment of any party
which can be asserted against the warrantor.
(5) 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.
(6) With respect to a remotely created consumer item, the person on whose account
the item is drawn authorized the issuance of the item in the amount for which the
item is drawn.
(B) A person to whom the warranties set forth in division (A) of this section 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.
(C) The warranties set forth in division (A) of this section cannot be disclaimed
with respect to checks. Unless notice of a claim for breach of warranty is given to the warrantor within
thirty days after the claimant has reason to know of the breach and the identity of
the warrantor, the liability of the warrantor under division (B) of this section is
discharged to the extent of any loss caused by the delay in giving notice of the claim.
(D) A cause of action for breach of warranty under this section accrues when the claimant
has reason to know 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.
Was this helpful?
Response sent, thank you
Welcome to FindLaw's Cases & Codes
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.