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Can you summarize IACO 554.4208?
UNIFORM COMMERCIAL CODE > Presentment warranties.
Short Summary
This legal document, part of the Iowa Code’s Uniform Commercial Code, governs presentment warranties in commercial transactions. It applies to drawees, warrantors, and persons making payment. The document establishes warranties that the person obtaining payment or acceptance of an unaccepted draft warrants to the drawee, including being entitled to enforce the draft, no alteration of the draft, no unauthorized signature, and authorization of the creation of a demand draft. The document also outlines the rights of the drawee to recover damages for breach of warranty, the defenses available to warrantors, and the warranties applicable to dishonored drafts. The warranties stated in subsections 1 and 4 cannot be disclaimed with respect to checks. Failure to give notice of a claim for breach of warranty within sixty days discharges the warrantor to the extent of any loss caused by the delay. A cause of action for breach of warranty accrues when the claimant has reason to know of the breach.
Whom does it apply to?
Drawees, warrantors, and persons making payment
What does it govern?
Presentment warranties
What are exemptions?
The warranties stated in subsections 1 and 4 cannot be disclaimed with respect to checks.
What are the Penalties?
Damages for breach of warranty equal to the amount paid by the drawee less the amount received from the drawer, plus compensation for expenses and loss of interest resulting from the breach.
Jurisdiction
Iowa