400.4-209. Encoding and retention warranties. - Missouri Statutes

Encoding and retention warranties.

400.4-209. (a) A person who encodes information on or withrespect to an item after issue warrants to any subsequentcollecting bank and to the payor bank or other payor that theinformation is correctly encoded. If the customer of adepositary bank encodes, that bank also makes the warranty.

(b) A person who undertakes to retain an item pursuant toan agreement for electronic presentment warrants to anysubsequent collecting bank and to the payor bank or other payorthat retention and presentment of the item comply with theagreement. If a customer of a depositary bank undertakes toretain an item, that bank also makes this warranty.

(c) A person to whom warranties are made under this sectionand who took the item in good faith may recover from thewarrantor as damages for breach of warranty an amount equal tothe loss suffered as a result of the breach, plus expenses andloss of interest incurred as a result of the breach.

(L. 1992 S.B. 448)

*No continuity with § 400.4-209 as repealed by L. 1992 S.B. 448.