Okla. Stat. tit. 12A, § 12A-4-208: Presentment Warranties

PRESENTMENT WARRANTIES

(a) If an unaccepted draft is presented to the drawee for

payment or acceptance and the drawee pays or accepts the draft, (i)

the person obtaining payment or acceptance, at the time of

presentment, and (ii) a previous transferor of the draft, at the

time of transfer, warrant to the drawee that pays or accepts the

draft in good faith that:

(1) The warrantor is, or was, at the time the warrantor

transferred the draft, a person entitled to enforce

the draft or authorized to obtain payment or

acceptance of the draft on behalf of a person entitled

to enforce the draft;

(2) The draft has not been altered; and

(3) The warrantor has no knowledge that the signature of

the purported drawer of the draft is unauthorized.

(b) A drawee making payment may recover from a warrantor

damages for breach of warranty equal to the amount paid by the

drawee less the amount the drawee received or is entitled to receive

from the drawer because of the payment. In addition, the drawee is

entitled to compensation for expenses and loss of interest resulting

from the breach. The right of the drawee to recover damages under

this subsection is not affected by any failure of the drawee to

exercise ordinary care in making payment. If the drawee accepts the

draft (i) breach of warranty is a defense to the obligation of the

acceptor, and (ii) if the acceptor makes payment with respect to the

draft, the acceptor is entitled to recover from a warrantor for

breach of warranty the amounts stated in this subsection.

(c) If a drawee asserts a claim for breach of warranty under

subsection (a) of this section based on an unauthorized indorsement

of the draft or an alteration of the draft, the warrantor may defend

by proving that the indorsement is effective under Section 3-404 or

3-405 of this title or the drawer is precluded under Section 3-406

or 4-406 of this title from asserting against the drawee the

unauthorized indorsement or alteration.

(d) If (i) a dishonored draft is presented for payment to the

drawer or an indorser or (ii) any other item is presented for

payment to a party obliged to pay the item, and the item is paid,

the person obtaining payment and a prior transferor of the item

warrant to the person making payment in good faith that the

warrantor is, or was, at the time the warrantor transferred the

item, a person entitled to enforce the item or authorized to obtain

payment on behalf of a person entitled to enforce the item. The

person making payment may recover from any warrantor for breach of

warranty an amount equal to the amount paid plus expenses and loss

of interest resulting from the breach.

(e) The warranties stated in subsections (a) and (d) 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.

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

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