Okla. Stat. tit. 12A, § 12A-4-207: Transfer Warranties

TRANSFER WARRANTIES

(a) A customer or collecting bank that transfers an item and

receives a settlement or other consideration warrants to the

transferee and to any subsequent collecting bank that:

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

item;

(2) All signatures on the item are authentic and

authorized;

(3) The item has not been altered;

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

recoupment (subsection (a) of Section 3-305 of this

title) of any party that 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) If an item is dishonored, a customer or collecting bank

transferring the item and receiving settlement or other

consideration is obliged to pay the amount due on the item (i)

according to the terms of the item at the time it was transferred,

or (ii) if the transfer was of an incomplete item, according to its

terms when completed as stated in Sections 3-115 and 3-407 of this

title. The obligation of a transferor is owed to the transferee and

to any subsequent collecting bank that takes the item in good faith.

A transferor cannot disclaim its obligation under this subsection by

an indorsement stating that it is made "without recourse" or

otherwise disclaiming liability.

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

this section are made and who took the item 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 item plus expenses and loss of interest

incurred as a result of the breach.

(d) 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 warrantor is discharged to the

extent of any loss caused by the delay in giving notice of the

claim.

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

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