Texas Business & Commerce Code

§ 4.207 — TRANSFER WARRANTIES

BC § 4.207Title 1. UNIFORM COMMERCIAL CODE · Ch. 4. BANK DEPOSITS AND COLLECTIONS · Art. B. COLLECTION OF ITEMS: DEPOSITARY AND COLLECTING BANKS

Statute text

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(a)A 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:

(1)the warrantor is a person entitled to enforce the item;

(2)all signatures on the item are authentic and authorized;

(3)the item has not been altered;

(4)the item is not subject to a defense or claim in recoupment (Section 3.305(a)) 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. 16, eff. September 1, 2005.