Texas Business & Commerce Code - Section 4.209. Encoding And Retention Warranties
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Texas Lawyer > Business & Commerce Code > Texas Business & Commerce Code - Section 4.209. Encoding And Retention Warranties
§ 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, § 4, eff. Jan. 1, 1996.
Section: 4.202 4.203 4.204 4.205 4.206 4.207 4.208 4.209 4.210 4.211 4.212 4.213 4.214 4.215 4.216
Last modified: August 10, 2007
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