Sec. 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.
Amended by Acts 1995, 74th Leg., ch. 921, Sec. 4, eff. Jan. 1, 1996.
Structure Texas Statutes
Title 1 - Uniform Commercial Code
Chapter 4 - Bank Deposits and Collections
Subchapter B. Collection of Items: Depositary and Collecting Banks
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 Directly to Payor Bank
Section 4.205. Depository Bank Holder of Unindorsed Item
Section 4.206. Transfer Between Banks
Section 4.207. Transfer Warranties
Section 4.208. Presentment Warranties
Section 4.209. Encoding and Retention Warranties
Section 4.210. Security Interest of Collecting Bank in Items, Accompanying Documents and Proceeds
Section 4.211. When Bank Gives Value for Purposes of Holder in Due Course
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