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Can you summarize NVRS 104.3417?
Uniform Commercial CodeOriginal Articles > Presentment warranties.
Short Summary
This section of the Nevada Revised Statutes, specifically under the Uniform Commercial CodeOriginal Articles, governs presentment warranties in commercial transactions. It outlines the warranties that apply when an unaccepted draft is presented to the drawee for payment or acceptance. The person obtaining payment or acceptance, as well as previous transferors of the draft, warrant to the drawee that they are entitled to enforce the draft, the draft has not been altered, they have no knowledge of unauthorized signatures, and, in the case of remotely-created items, the person on whose account the item is drawn authorized its issuance. The drawee has the right to recover damages for breach of warranty, including the amount paid by the drawee, expenses, and loss of interest. The warranties cannot be disclaimed for checks. Notice of a claim for breach of warranty must be given within 30 days. The section also addresses breach of warranty in relation to dishonored drafts and other instruments presented for payment. It clarifies that no claim for breach of warranty is available against a person to which an item was transferred if they did not make the warranty. Overall, this section establishes the rights and responsibilities of parties involved in the presentment of drafts and instruments in commercial transactions.
Whom does it apply to?
Drawees, warrantors, and persons entitled to enforce the draft
What does it govern?
Presentment warranties
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Damages for breach of warranty equal to the amount paid by the drawee, plus compensation for expenses and loss of interest resulting from the breach.
Jurisdiction
Nevada