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Can you summarize MICL 440.4208?
PART 2 COLLECTION OF ITEMS: DEPOSITARY AND COLLECTING BANKS (440.4201...440.4216) > Presentment of unaccepted or dishonored draft; warranties of person obtaining payment and prior transferor; discharge; accrual of cause of action.
Short Summary
This legal document, part of the Michigan Compiled Laws, specifically falls under the Uniform Commercial Code (UCC) and pertains to the presentment of unaccepted or dishonored drafts. It outlines the warranties that the person obtaining payment or acceptance of the draft and the previous transferor of the draft provide to the drawee. These warranties include being entitled to enforce the draft, no alteration of the draft, no knowledge of unauthorized signature, and authorization for remotely created consumer items. The document also covers the rights of drawees to recover damages for breach of warranty, the defenses available to warrantors, and the warranties applicable to dishonored drafts or other items. It further states that the warranties cannot be disclaimed for checks and sets a time limit for notifying warrantors of breach of warranty claims. A cause of action for breach of warranty accrues when the claimant has reason to know of the breach.
Whom does it apply to?
This governs the rights and obligations of drawees, persons obtaining payment or acceptance of drafts, previous transferors of drafts, and persons making payment for dishonored drafts or other items.
What does it govern?
Presentment of unaccepted or dishonored draft; warranties of person obtaining payment and prior transferor; discharge; accrual of cause of action.
What are exemptions?
No exemptions are mentioned.
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
Michigan