Sec. 209. (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.
Formerly: Acts 1963, c.317, s.4-209. As amended by P.L.152-1986, SEC.217; P.L.222-1993, SEC.25.
Structure Indiana Code
Article 1. Uniform Commercial Code
Chapter 4. Bank Deposits and Collections
26-1-4-102.5. Application of Bank Provisions to Supervised Financial Organizations
26-1-4-103. Variation by Agreement; Measure of Damages; Action Constituting Ordinary Care
26-1-4-104. Definitions and Index of Definitions
26-1-4-106. Payable Through or Payable at Bank; Collecting Bank
26-1-4-107. Separate Office of Bank
26-1-4-108. Time of Receipt of Items
26-1-4-110. Electronic Presentment
26-1-4-111. Statute of Limitations
26-1-4-202. Responsibility for Collection or Return; When Action Timely
26-1-4-203. Effect of Instructions
26-1-4-204. Methods of Sending and Presenting; Sending Directly to Payor Bank
26-1-4-205. Depositary Bank Holder of Unendorsed Items
26-1-4-206. Transfer Between Banks
26-1-4-207. Transfer Warranties
26-1-4-208. Presentment Warranties
26-1-4-209. Encoding and Retention Warranties
26-1-4-210. Security Interest of Collecting Bank in Items, Accompanying Documents, and Proceeds
26-1-4-211. When Bank Gives Value for Purposes of Holder in Due Course
26-1-4-213. Medium and Time of Settlement by Bank
26-1-4-214. Right of Charge-Back or Refund; Liability of Collecting Bank; Return of Item
26-1-4-216. Insolvency and Preference
26-1-4-302. Payor Bank's Responsibility for Late Return of Item
26-1-4-401. When Bank May Charge Customer's Account
26-1-4-403. Customer's Right to Stop Payment; Burden of Proof of Loss
26-1-4-404. Bank Not Obligated to Pay Check More Than Six Months Old
26-1-4-405. Death or Incompetence of Customer
26-1-4-406. Customer's Duty to Discover and Report Unauthorized Signature or Alteration
26-1-4-407. Payor Bank's Right to Subrogation on Improper Payment
26-1-4-502. Presentment of "On Arrival" Drafts
26-1-4-504. Privilege of Presenting Bank to Deal With Goods; Security Interest for Expenses