Maine Revised Statutes
Part 2: COLLECTION OF ITEMS; DEPOSITARY AND COLLECTING BANKS
11 §4-207-B. Presentment warranties

§4-207-B. Presentment warranties
(1).  If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, the person obtaining payment or acceptance, at the time of presentment, and a previous transferor of the draft, at the time of transfer, warrant to the drawee that pays or accepts the draft in good faith that:  
(a). The warrantor is, or was, at the time the warrantor transferred the draft, a person entitled to enforce the draft or authorized to obtain payment or acceptance of the draft on behalf of a person entitled to enforce the draft;   [PL 1993, c. 293, Pt. B, §26 (NEW).]
(b). The draft has not been altered;   [PL 2003, c. 594, §13 (AMD).]
(c). The warrantor has no knowledge that the signature of the purported drawer of the draft is unauthorized; and   [PL 2003, c. 594, §13 (AMD).]
(d). If the draft is a demand draft, creation of the demand draft according to the terms on its face was authorized by the person identified as the drawer.   [PL 2003, c. 594, §13 (NEW).]
[PL 2003, c. 594, §13 (AMD).]
(2).  A drawee making payment may recover from a warrantor damages for breach of warranty equal to the amount paid by the drawee less the amount the drawee received or is entitled to receive from the drawer because of the payment. In addition, the drawee is entitled to compensation for expenses and loss of interest resulting from the breach. The right of the drawee to recover damages under this subsection is not affected by any failure of the drawee to exercise ordinary care in making payment. If the drawee accepts the draft:  
(a). Breach of warranty is a defense to the obligation of the acceptor; and   [PL 1993, c. 293, Pt. B, §26 (NEW).]
(b). If the acceptor makes payment with respect to the draft, the acceptor is entitled to recover from a warrantor for breach of warranty the amounts stated in this subsection.   [PL 1993, c. 293, Pt. B, §26 (NEW).]
[PL 1993, c. 293, Pt. B, §26 (NEW).]
(3).  If a drawee asserts a claim for breach of warranty under subsection (1) based on an unauthorized indorsement of the draft or an alteration of the draft, the warrantor may defend by proving that the indorsement is effective under section 3‑1404 or 3‑1405 or the drawer is precluded under section 3‑1406 or 4-406 from asserting against the drawee the unauthorized indorsement or alteration.  
[PL 1993, c. 293, Pt. B, §26 (NEW).]
(4).  If a dishonored draft is presented for payment to the drawer or an indorser or any other item is presented for payment to a party obliged to pay the item, and the item is paid, the person obtaining payment and a prior transferor of the item warrant to the person making payment in good faith that the warrantor is, or was, at the time the warrantor transferred the item, a person entitled to enforce the item or authorized to obtain payment on behalf of a person entitled to enforce the item. The person making payment may recover from any warrantor for breach of warranty an amount equal to the amount paid plus expenses and loss of interest resulting from the breach.  
[PL 1993, c. 293, Pt. B, §26 (NEW).]
(5).  The warranties stated in subsections (1) and (4) can not 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 warrantor is discharged to the extent of any loss caused by the delay in giving notice of the claim.  
[PL 1993, c. 293, Pt. B, §26 (NEW).]
(6).  A cause of action for breach of warranty under this section accrues when the claimant has reason to know of the breach.  
[PL 1993, c. 293, Pt. B, §26 (NEW).]
(7).  A demand draft is a check, as provided in section 3‑1104, subsection (6).  
[PL 2003, c. 594, §14 (NEW).]
(8).  If the warranty in subsection (1), paragraph (d) is not given by a transferor under applicable conflict of laws rules, then the warranty is not given to the transferor when that transferor is a transferee.  
[PL 2003, c. 594, §14 (NEW).]
SECTION HISTORY
PL 1993, c. 293, §B26 (NEW). PL 2003, c. 594, §§13,14 (AMD).

Structure Maine Revised Statutes

Maine Revised Statutes

TITLE 11: UNIFORM COMMERCIAL CODE

Article 4: BANK DEPOSITS AND COLLECTIONS

Part 2: COLLECTION OF ITEMS; DEPOSITARY AND COLLECTING BANKS

11 §4-201. Status of collecting bank as agent and provisional status of credits; applicability of Article; item indorsed "pay any bank"

11 §4-202. Responsibility for collection or return; when action timely

11 §4-203. Effect of instructions

11 §4-204. Methods of sending and presenting; sending directly to payor bank

11 §4-205. Depositary bank holder of unindorsed item

11 §4-206. Transfer between banks

11 §4-207. Warranties of customer and collecting bank on transfer or presentment of items; time for claims (REPEALED)

11 §4-207-A. Transfer warranties

11 §4-207-B. Presentment warranties

11 §4-207-C. Encoding and retention warranties

11 §4-208. Security interest of collecting bank in items, accompanying documents and proceeds

11 §4-209. When bank gives value for purposes of holder in due course

11 §4-210. Presentment by notice of item not payable by, through or at a bank; liability of drawer or indorser

11 §4-211. Media of remittance; provisional and final settlement in remittance cases (REPEALED)

11 §4-211-A. Medium and time of settlement by bank

11 §4-212. Right of charge-back or refund; liability of collecting bank; return of item

11 §4-213. Final payment of item by payor bank; when provisional debits and credits become final; when certain credits become available for withdrawal

11 §4-214. Insolvency and preference