Kentucky Statutes 355.4-209 – Encoding and retention warranties
Current as of: 2024 | Check for updates
|
Other versions
(1) 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.
(2) 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.
(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.
Effective: January 1, 1997
History: Created 1996 Ky. Acts ch. 130, sec. 91, effective January 1, 1997.
History for former KRS § 355.4-209: Repealed, reenacted, renumbered, as KRS § 355.4-
211, and amended, 1996 Ky. Acts ch. 130, sec. 93, effective January 1, 1997. — Created 1958 Ky. Acts ch. 77, sec. 4-209, effective July 1, 1960.
(2) 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.
Terms Used In Kentucky Statutes 355.4-209
- Customer: means a person having an account with a bank or for whom a bank has agreed to collect items including a bank that maintains an account at another bank. See Kentucky Statutes 355.4-104
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Item: means an instrument or a promise or order to pay money handled by a bank for collection or payment. See Kentucky Statutes 355.4-104
(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.
Effective: January 1, 1997
History: Created 1996 Ky. Acts ch. 130, sec. 91, effective January 1, 1997.
History for former KRS § 355.4-209: Repealed, reenacted, renumbered, as KRS § 355.4-
211, and amended, 1996 Ky. Acts ch. 130, sec. 93, effective January 1, 1997. — Created 1958 Ky. Acts ch. 77, sec. 4-209, effective July 1, 1960.