Section 4–209. (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.
Structure Massachusetts General Laws
Part I - Administration of the Government
Title XV - Regulation of Trade
Chapter 106 - Uniform Commercial Code
Article 4 - Bank Deposits and Collections
Section 4-213 - Medium and Time of Settlement by Bank
Section 4-214 - Right of Charge–back or Refund; Liability of Collecting Bank; Return of Item
Section 4-211 - When Bank Gives Value for Purposes of Holder in Due Course
Section 4-216 - Insolvency and Preference
Section 4-302 - Payor Bank's Responsibility for Late Return of Item
Section 4-407 - Payor Bank's Right to Subrogation on Improper Payment
Section 4-401 - When Bank May Charge Customer's Account
Section 4-404 - Bank Not Obliged to Pay Check More Than Six Months Old
Section 4-405 - Death or Incompetence of Customer
Section 4-406 - Customer's Duty to Discover and Report Unauthorized Signature or Alteration
Section 4-210 - Security Interest of Collecting Bank in Items, Accompanying Documents and Proceeds
Section 4-502 - Presentment of ''on Arrival'' Drafts
Section 4-209 - Encoding and Retention Warranties
Section 4-104 - Definitions and Index of Definitions
Section 4-207 - Transfer Warranties
Section 4-103 - Variation by Agreement; Measure of Damages; Action Constituting Ordinary Care
Section 4-106 - Payable Through or Payable at Bank; Collecting Bank
Section 4-107 - Separate Office of Bank
Section 4-108 - Time of Receipt of Items
Section 4-110 - Electronic Presentment
Section 4-111 - Statute of Limitations
Section 4-202 - Responsibility for Collection or Return; When Action Timely
Section 4-203 - Effect of Instructions
Section 4-204 - Methods of Sending and Presenting; Sending Direct to Payor Bank
Section 4-205 - Depositary Bank Holder of Unindorsed Item
Section 4-206 - Transfer Between Banks
Section 4-208 - Presentment Warranties
Section 4-504 - Privilege of Presenting Bank to Deal With Goods; Security Interest for Expenses
Section 4-403 - Customer's Right to Stop Payment; Burden of Proof of Loss