(a) The warrantor is a person entitled to enforce the instrument;
(b) All signatures on the instrument are authentic and authorized;
(c) The instrument has not been altered;
(d) The instrument is not subject to a defense or claim in recoupment of any party which can be asserted against the warrantor;
(e) The warrantor has no knowledge of any insolvency proceeding commenced with respect to the maker or acceptor or, in the case of an unaccepted draft, the drawer; and
(f) If the instrument is a demand draft, creation of the instrument according to the terms on its face was authorized by the person identified as drawer.
(2) A person to whom the warranties under subsection (1) of this section are made and who took the instrument 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, but not more than the amount of the instrument plus expenses and loss of interest incurred as a result of the breach.
(3) The warranties stated in subsection (1) of this section cannot be disclaimed with respect to checks. Unless notice of a claim for breach of warranty is given to the warrantor within 30 days after the claimant has reason to know of the breach and the identity of the warrantor, the liability of the warrantor under subsection (2) of this section is discharged to the extent of any loss caused by the delay in giving notice of the claim.
(4) A claim for relief for breach of warranty under this section accrues when the claimant has reason to know of the breach.
(5) If the warranty in subsection (1)(f) of this section is not given by a transferor under applicable conflict of law rules, then the warranty is not given to that transferor when that transferor is a transferee. [1993 c.545 §57; 1997 c.822 §3]
Structure 2021 Oregon Revised Statutes
Volume : 02 - Business Organizations, Commercial Code
Chapter 073 - Negotiable Instruments
Section 73.0102 - Application of chapter.
Section 73.0103 - Definitions.
Section 73.0104 - Negotiable instrument; other definitions.
Section 73.0105 - Issue of instrument.
Section 73.0106 - Unconditional promise or order.
Section 73.0108 - Payable on demand or at definite time.
Section 73.0109 - Payable to bearer or to order.
Section 73.0110 - Identification of person to whom instrument is payable.
Section 73.0113 - Date of instrument.
Section 73.0115 - Incomplete instrument.
Section 73.0116 - Joint and several liability; contribution.
Section 73.0118 - Statute of limitations.
Section 73.0201 - Negotiation.
Section 73.0202 - Negotiation subject to rescission.
Section 73.0203 - Transfer of instrument; rights acquired by transfer.
Section 73.0204 - Indorsement.
Section 73.0205 - Special indorsement; blank indorsement; anomalous indorsement.
Section 73.0206 - Restrictive indorsement.
Section 73.0302 - Holder in due course.
Section 73.0303 - Value and consideration.
Section 73.0304 - Overdue instrument.
Section 73.0305 - Defenses and claims in recoupment.
Section 73.0307 - Notice of breach of fiduciary duty.
Section 73.0308 - Proof of signatures and status as holder in due course.
Section 73.0309 - Enforcement of lost, destroyed or stolen instrument.
Section 73.0310 - Effect of instrument on obligation for which taken.
Section 73.0312 - Lost, destroyed or stolen cashier’s check, teller’s check or certified check.
Section 73.0402 - Signature by representative.
Section 73.0403 - Unauthorized signature.
Section 73.0404 - Impostors; fictitious payees.
Section 73.0405 - Employer’s responsibility for fraudulent indorsement by employee.
Section 73.0406 - Negligence contributing to forged signature or alteration of instrument.
Section 73.0409 - Acceptance of draft; certified check.
Section 73.0410 - Acceptance varying draft.
Section 73.0411 - Refusal to pay cashier’s checks, teller’s checks and certified checks.
Section 73.0413 - Obligation of acceptor.
Section 73.0414 - Obligation of drawer.
Section 73.0415 - Obligation of indorser.
Section 73.0416 - Transfer warranties.
Section 73.0417 - Presentment warranties.
Section 73.0418 - Payment or acceptance by mistake.
Section 73.0419 - Instruments signed for accommodation.
Section 73.0420 - Conversion of instrument.
Section 73.0501 - Presentment.
Section 73.0503 - Notice of dishonor.
Section 73.0504 - Excused presentment and notice of dishonor.
Section 73.0505 - Evidence of dishonor.
Section 73.0601 - Discharge and effect of discharge.
Section 73.0603 - Tender of payment.
Section 73.0604 - Discharge by cancellation or renunciation.
Section 73.0605 - Discharge of indorsers and accommodation parties.