47-4209

47-4209. Encoding and retention
warranties

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

B. A person who undertakes to retain an item pursuant to an agreement for
electronic presentment warrants to any subsequent collecting bank and to the payor bank
or other payor that retention and presentment of the item comply with the agreement. If
a customer of a depositary bank undertakes to retain an item, that bank also makes this
warranty.

C. A person to whom warranties are made under this section and who took the item 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, plus expenses and loss of interest
incurred as a result of the breach.