30-4-216. Encoding and retention warranties. (1) A person that 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 that undertakes to retain an item pursuant to a truncation agreement warrants to any subsequent collecting bank and to the payor bank or other payor that retention and presentment of the item comply with the truncation 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: En. Sec. 172, Ch. 410, L. 1991.
Structure Montana Code Annotated
Chapter 4. Uniform Commercial Code Bank Deposits and Collections
Part 2. Collection of Items Depositary and Collecting Banks
30-4-202. Responsibility for collection or return -- when action timely
30-4-203. Effect of instructions
30-4-204. Methods of sending and presenting -- sending directly to payor bank
30-4-205. Depositary bank holder of unindorsed item
30-4-206. Transfer between banks
30-4-208. Security interest of collecting bank in items, accompanying documents, and proceeds
30-4-209. When bank gives value for purposes of holder in due course
30-4-211. Medium and time of settlement by bank
30-4-212. Right of charge-back or refund -- liability of collecting bank -- return of item
30-4-214. Insolvency and preference