(a) A person who transfers an instrument for consideration warrants to thetransferee and, if the transfer is by endorsement, to any subsequenttransferee that:
(1) the warrantor is a person entitled to enforce the instrument;
(2) all signatures on the instrument are authentic and authorized;
(3) the instrument has not been altered;
(4) the instrument is not subject to a defense or claim in recoupment of anyparty which can be asserted against the warrantor; and
(5) the warrantor has no knowledge of any insolvency proceeding commencedwith respect to the maker or acceptor or, in the case of an unaccepted draft,the drawer.
(b) A person to whom the warranties under subsection (a) are made and whotook the instrument in good faith may recover from the warrantor as damagesfor breach of warranty an amount equal to the loss suffered as a result ofthe breach, but not more than the amount of the instrument plus expenses andloss of interest incurred as a result of the breach.
(c) The warranties stated in subsection (a) cannot be disclaimed with respectto checks. Unless notice of a claim for breach of warranty is given to thewarrantor within thirty days after the claimant has reason to know of thebreach and the identity of the warrantor, the liability of the warrantorunder subsection (b) is discharged to the extent of any loss caused by thedelay in giving notice of the claim.
(d) A cause of action for breach of warranty under this section accrues whenthe claimant has reason to know of the breach.
(Code 1950, §§ 6-417, 6-421; 1964, c. 219, § 8.3-417; 1992, c. 693.)
(a) A person who transfers an instrument for consideration warrants to thetransferee and, if the transfer is by endorsement, to any subsequenttransferee that:
(1) the warrantor is a person entitled to enforce the instrument;
(2) all signatures on the instrument are authentic and authorized;
(3) the instrument has not been altered;
(4) the instrument is not subject to a defense or claim in recoupment of anyparty which can be asserted against the warrantor; and
(5) the warrantor has no knowledge of any insolvency proceeding commencedwith respect to the maker or acceptor or, in the case of an unaccepted draft,the drawer.
(b) A person to whom the warranties under subsection (a) are made and whotook the instrument in good faith may recover from the warrantor as damagesfor breach of warranty an amount equal to the loss suffered as a result ofthe breach, but not more than the amount of the instrument plus expenses andloss of interest incurred as a result of the breach.
(c) The warranties stated in subsection (a) cannot be disclaimed with respectto checks. Unless notice of a claim for breach of warranty is given to thewarrantor within thirty days after the claimant has reason to know of thebreach and the identity of the warrantor, the liability of the warrantorunder subsection (b) is discharged to the extent of any loss caused by thedelay in giving notice of the claim.
(d) A cause of action for breach of warranty under this section accrues whenthe claimant has reason to know of the breach.
(Code 1950, §§ 6-417, 6-421; 1964, c. 219, § 8.3-417; 1992, c. 693.)
(a) A person who transfers an instrument for consideration warrants to thetransferee and, if the transfer is by endorsement, to any subsequenttransferee that:
(1) the warrantor is a person entitled to enforce the instrument;
(2) all signatures on the instrument are authentic and authorized;
(3) the instrument has not been altered;
(4) the instrument is not subject to a defense or claim in recoupment of anyparty which can be asserted against the warrantor; and
(5) the warrantor has no knowledge of any insolvency proceeding commencedwith respect to the maker or acceptor or, in the case of an unaccepted draft,the drawer.
(b) A person to whom the warranties under subsection (a) are made and whotook the instrument in good faith may recover from the warrantor as damagesfor breach of warranty an amount equal to the loss suffered as a result ofthe breach, but not more than the amount of the instrument plus expenses andloss of interest incurred as a result of the breach.
(c) The warranties stated in subsection (a) cannot be disclaimed with respectto checks. Unless notice of a claim for breach of warranty is given to thewarrantor within thirty days after the claimant has reason to know of thebreach and the identity of the warrantor, the liability of the warrantorunder subsection (b) is discharged to the extent of any loss caused by thedelay in giving notice of the claim.
(d) A cause of action for breach of warranty under this section accrues whenthe claimant has reason to know of the breach.
(Code 1950, §§ 6-417, 6-421; 1964, c. 219, § 8.3-417; 1992, c. 693.)
