Okla. Stat. tit. 12A, § 12A-3-416: Transfer Warranties

TRANSFER WARRANTIES

(a) A person who transfers an instrument for consideration

warrants to the transferee and, if the transfer is by indorsement,

to any subsequent transferee that:

(1) The warrantor is a person entitled to enforce the

instrument;

(2) All signatures on the instrument are authentic and

authorized;

(3) The instrument has not been altered;

(4) The instrument is not subject to a defense or claim in

recoupment of any party which can be asserted against

the warrantor; and

(5) The warrantor has no knowledge of any insolvency

proceeding commenced with respect to the maker or

acceptor or, in the case of an unaccepted draft, the

drawer.

(b) A person to whom the warranties under subsection (a) of

this section are made and who took the instrument in good faith may

recover from the warrantor as damages for breach of warranty an

amount equal to the loss suffered as a result of the breach, but not

more than the amount of the instrument plus expenses and loss of

interest incurred as a result of the breach.

(c) The warranties stated in subsection (a) of this section

cannot be disclaimed with respect to checks. Unless notice of a

claim for breach of warranty is given to the warrantor within thirty

(30) days after the claimant has reason to know of the breach and

the identity of the warrantor, the liability of the warrantor under

subsection (b) of this section is discharged to the extent of any

loss caused by the delay in giving notice of the claim.

(d) A claim for relief for breach of warranty under this

section accrues when the claimant has reason to know of the breach.