§490:4-209  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. [L 1991, c 118, pt of §4]



 



Note



 



  This section is new.  Former §490:4-209 renumbered as
§490:4-211.