§ 25-4-207.2. Encoding and retention warranties. - North Carolina Statutes

§25‑4‑207.2.  Encoding and retention warranties.

(a)        A person whoencodes information on or with respect to an item after issue warrants to anysubsequent collecting bank and to the payor bank or other payor that theinformation is correctly encoded. If the customer of a depositary bank encodes,that bank also makes the warranty.

(b)        A person whoundertakes to retain an item pursuant to an agreement for electronicpresentment warrants to any subsequent collecting bank and to the payor bank orother payor that retention and presentment of the item comply with theagreement. If a customer of a depositary bank undertakes to retain an item,that bank also makes this warranty.

(c)        A person to whomwarranties are made under this section and who took the item in good faith mayrecover 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 interestincurred as a result of the breach. (1965, c. 700, s. 1; 1995, c.232, s. 2.)