8.4-207.3 - Encoding and retention warranties. - Virginia Statutes

§ 8.4-207.3. Encoding and retention warranties.

(a) A person who encodes information on or with respect to an item afterissue warrants to any subsequent collecting bank and to the payor bank orother payor that the information 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 to an agreement forelectric presentment warrants to any subsequent collecting bank and to thepayor bank or other payor that retention and presentment of the item complywith the agreement. If a customer of a depositary bank undertakes to retainan item, that bank also makes this warranty.

(c) A person to whom warranties are made under this section and who took theitem in good faith may recover from the warrantor as damages for breach ofwarranty an amount equal to the loss suffered as a result of the breach, plusexpenses and loss of interest incurred as a result of the breach.

(1992, c. 693.)