California Commercial Code

§ 3417

COM § 3417 Effective Jan 1, 1997Div. 3 · Ch. 4

Statute text

(a)If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, (i) the person obtaining payment or acceptance, at the time of presentment, and (ii) a previous transferor of the draft, at the time of transfer, warrant all of the following to the drawee making payment or accepting the draft in good faith:

(1)The warrantor is, or was, at the time the warrantor transferred the draft, a person entitled to enforce the draft or authorized to obtain payment or acceptance of the draft on behalf of a person entitled to enforce the draft.

(2)The draft has not been altered.

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Legislative history

Amended by Stats. 1996, Ch. 316, Sec. 4. Effective January 1, 1997.