 |
Florida Statutes (Last Updated: April 21, 2021) |
 |
TITLE XXXIX. COMMERCIAL RELATIONS |
|
CHAPTER 674. UNIFORM COMMERCIAL CODE: BANK DEPOSITS AND COLLECTIONS |
|
PART II. COLLECTION OF ITEMS: DEPOSITARY AND COLLECTING BANKS |
Latest version.
- 1(1) 2A customer or collecting bank that transfers an item and receives a settlement or other consideration warrants to the transferee and to any subsequent collecting bank that:29(a) 30The warrantor is a person entitled to enforce the item;40(b) 41All signatures on the item are authentic and authorized;50(c) 51The item has not been altered;57(d) 58The item is not subject to a defense or claim in recoupment (s. 71673.3051(1)72) of any party that can be asserted against the warrantor; and84(e) 85The warrantor has no knowledge of any insolvency proceeding commenced with respect to the maker or acceptor or, in the case of an unaccepted draft, the drawer.112(2) 113If an item is dishonored, a customer or collecting bank transferring the item and receiving settlement or other consideration is obliged to pay the amount due on the item according to the terms of the item at the time it was transferred or, if the transfer was of an incomplete item, according to its terms when completed as stated in ss. 174673.1151 175and 176673.4071177. The obligation of a transferor is owed to the transferee and to any subsequent collecting bank that takes the item in good faith. A transferor cannot disclaim its obligation under this subsection by an indorsement stating that it is made “without recourse” or otherwise disclaiming liability.224(3) 225A person to whom the warranties under subsection (1) are made 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, but not more than the amount of the item plus expenses and loss of interest incurred as a result of the breach.290(4) 291The warranties stated in subsection (1) cannot be disclaimed with respect to checks. Unless notice of a claim for breach of warranty is given to the warrantor within 30 days after the claimant has reason to know of the breach and the identity of the warrantor, the warrantor is discharged to the extent of any loss caused by the delay in giving notice of the claim.357(5) 358A cause of action for breach of warranty under this section accrues when the claimant has reason to know of the breach.
History.-s. 1, ch. 65-254; s. 25, ch. 92-82.
Note
Note.-s. 4-207, U.C.C.; supersedes ss. 674.67, 674.71.
