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Can you summarize MNST 336.4-207?
UNIFORM COMMERCIAL CODE > TRANSFER WARRANTIES.
Short Summary
This legal document governs transfer warranties in the context of item transfers and settlements. It applies to customers, collecting banks, transferees, and subsequent collecting banks involved in the transfer of items. The document outlines the warranties made by the transferor, including the authenticity and authorization of signatures, absence of alterations, absence of defenses or claims in recoupment, lack of knowledge of insolvency proceedings, and authorization for remotely created items. If an item is dishonored, the transferor is obliged to pay the amount due on the item according to its terms at the time of transfer or completion. The transferor cannot disclaim its obligation through endorsements. A person who took the item in good faith and to whom the warranties were made can recover damages for breach of warranty. Notice of a claim for breach of warranty must be given within 30 days. The document also clarifies that the warranties cannot be disclaimed with respect to checks. A cause of action for breach of warranty accrues when the claimant has reason to know of the breach. Additionally, a claim for breach in the warranty of remotely created items is available against previous transferors who made the same warranty. No specific exemptions are mentioned in the document.
Whom does it apply to?
Customers, collecting banks, transferees, subsequent collecting banks
What does it govern?
Transfer warranties
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Damages for breach of warranty equal to the loss suffered as a result of the breach, but not more than the amount of the item plus expenses and loss of interest incurred as a result of the breach.
Jurisdiction
Minnesota