Texas Business & Commerce Code
§ 3.416 — TRANSFER WARRANTIES
BC § 3.416Title 1. UNIFORM COMMERCIAL CODE · Ch. 3. NEGOTIABLE INSTRUMENTS · Art. D. LIABILITY OF PARTIES
Statute text
View on source(a)A person who transfers an instrument for consideration warrants to the transferee and, if the transfer is by indorsement, to any subsequent transferee that:
(1)the warrantor is a person entitled to enforce the instrument;
(2)all signatures on the instrument are authentic and authorized;
(3)the instrument has not been altered;
(4)the instrument is not subject to a defense or claim in recoupment of any party that can be asserted against the warrantor;
(5)the 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; and
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Legislative history
Acts 2005, 79th Leg., Ch. 95 (S.B. 1563), Sec. 8, eff. September 1, 2005.