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Can you summarize IACO 554.4207?
UNIFORM COMMERCIAL CODE > Transfer warranties.
Short Summary
This legal document, governed by the Iowa Code under the Uniform Commercial Code, pertains to the transfer warranties in commercial transactions. It outlines the warranties that a customer or collecting bank provides when transferring an item and receiving settlement or other consideration. These warranties include ensuring that the warrantor is entitled to enforce the item, all signatures on the item are authentic and authorized, the item has not been altered, and the item is not subject to any defense or claim in recoupment. The warrantor also warrants that they have no knowledge of any insolvency proceeding commenced with respect to the maker or acceptor, and if the item is a demand draft, its creation was authorized by the identified drawer. The document further explains the obligations of a transferor if an item is dishonored and the rights of a person who took the item in good faith. It also addresses the disclaiming of warranties with respect to checks and the time limits for giving notice of a claim for breach of warranty. Overall, this document establishes the warranties and obligations involved in the transfer of items in commercial transactions.
Whom does it apply to?
Customers, collecting banks, transferees, subsequent collecting banks
What does it govern?
Transfer warranties
What are exemptions?
Checks
What are the Penalties?
No specific penalties mentioned
Jurisdiction
Iowa