§ 6A-4-209 - Encoding and retention warranties. - Rhode Island Statutes

SECTION 6A-4-209

   § 6A-4-209  Encoding and retentionwarranties. – (a) A person who encodes information on or with respect to an item after issuewarrants to any subsequent collecting bank and to the payor bank or other payorthat the information is correctly encoded. If the customer of a depositary bankencodes, that bank also makes the warranty.

   (b) A person who undertakes to retain an item pursuant to anagreement for electronic presentment warrants to any subsequent collecting bankand to the payor bank or other payor that retention and presentment of the itemcomply with the agreement. 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 the warrantor as damagesfor breach of warranty an amount equal to the loss suffered as a result of thebreach, plus expenses and loss of interest incurred as a result of the breach.