554.4209 Encoding and retention warranties. 1. 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 informationis correctly encoded. If the customer of a depositary bank encodes, that bank also makes thewarranty. 2. 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 payorthat retention and presentment of the item comply with the agreement. If a customer of adepositary bank undertakes to retain an item, that bank also makes this warranty. 3. 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 amountequal to the loss suffered as a result of the breach, plus expenses and loss of interest incurredas a result of the breach. 94 Acts, ch 1167, §103, 120, 122 Sat Dec 23 01:57:23 2023 Iowa Code 2024, Section 554.4209 (24, 0)
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