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Can you summarize NHRS 382-A:3-416?
UNIFORM COMMERCIAL CODE > Transfer Warranties.
Short Summary
This legal document, part of the New Hampshire Revised Statutes under the Uniform Commercial Code, governs transfer warranties for instruments. It applies to persons who transfer an instrument for consideration and subsequent transferees. The transferor warrants to the transferee and any subsequent transferees that they are entitled to enforce the instrument, all signatures on the instrument are authentic and authorized, the instrument has not been altered, the instrument is not subject to a defense or claim in recoupment, the warrantor has no knowledge of any insolvency proceeding, and if the instrument is a demand draft, its creation was authorized by the drawer. A person who took the instrument in good faith and to whom the warranties are made may recover damages for breach of warranty. However, the warranties cannot be disclaimed with respect to checks. Notice of a claim for breach of warranty must be given within 30 days after the claimant has reason to know of the breach and the identity of the warrantor. The cause of action for breach of warranty accrues when the claimant has reason to know of the breach. If the warranty in paragraph (6) of subsection (a) is not given by a transferor under applicable conflict of law rules, then the warranty is not given to that transferor when that transferor is a transferee.
Whom does it apply to?
Persons who transfer an instrument for consideration and subsequent transferees
What does it govern?
Transfer warranties
What are exemptions?
The warranties stated in subsection (a) cannot be disclaimed with respect to checks.
What are the Penalties?
Damages for breach of warranty can be recovered, but not more than the amount of the instrument plus expenses and loss of interest incurred as a result of the breach.
Jurisdiction
New Hampshire