§ 6A-4-209. Encoding and retention warranties.
(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.
History of Section.P.L. 2000, ch. 238, § 4; P.L. 2000, ch. 421, § 4.
Structure Rhode Island General Laws
Title 6A - Uniform Commercial Code
Chapter 6A-4 - Bank Deposits and Collections
Part 2 - Collection of Items: Depositary and Collecting Banks
Section 6A-4-202. - Responsibility for collection or return — When action timely.
Section 6A-4-203. - Effect of instructions.
Section 6A-4-204. - Methods of sending and presenting — Sending directly to payor bank.
Section 6A-4-205. - Depositary bank holder of unindorsed item.
Section 6A-4-206. - Transfer between banks.
Section 6A-4-207. - Transfer warranties.
Section 6A-4-208. - Presentment warranties.
Section 6A-4-209. - Encoding and retention warranties.
Section 6A-4-211. - When bank gives value for purposes of holder in due course.
Section 6A-4-213. - Medium and time of settlement by bank.
Section 6A-4-214. - Right of charge-back or refund — Liability of collecting bank — Return of item.