28-4-209. ENCODING AND RETENTION WARRANTIES. (1) 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.
(2) 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.
(3) 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.
History:
[28-4-209, added 1993, ch. 288, sec. 24, p. 1062.]
Structure Idaho Code
Title 28 - COMMERCIAL TRANSACTIONS
Chapter 4 - UNIFORM COMMERCIAL CODE — BANK DEPOSITS AND COLLECTIONS
Part 2 - COLLECTION OF ITEMS — DEPOSITARY AND COLLECTING BANKS
Section 28-4-202 - RESPONSIBILITY FOR COLLECTION OR RETURN — WHEN ACTION TIMELY.
Section 28-4-203 - EFFECT OF INSTRUCTIONS.
Section 28-4-204 - METHODS OF SENDING AND PRESENTING — SENDING DIRECTLY TO PAYOR BANK.
Section 28-4-205 - DEPOSITARY BANK HOLDER OF UNINDORSED ITEM.
Section 28-4-206 - TRANSFER BETWEEN BANKS.
Section 28-4-207 - TRANSFER WARRANTIES.
Section 28-4-208 - PRESENTMENT WARRANTIES.
Section 28-4-209 - ENCODING AND RETENTION WARRANTIES.
Section 28-4-211 - WHEN BANK GIVES VALUE FOR PURPOSES OF HOLDER IN DUE COURSE.
Section 28-4-213 - MEDIUM AND TIME OF SETTLEMENT BY BANK.
Section 28-4-214 - RIGHT OF CHARGE-BACK OR REFUND — LIABILITY OF COLLECTING BANK — RETURN OF ITEM.