{"data":{"id":"us-ky/krs-355.3-416","jurisdiction":"us-ky","citation":"KRS 355.3-416","heading":"Transfer warranties.","body":"(1) A person who transfers an instrument for consideration warrants to the transferee\nand, if the transfer is by indorsement, to any subsequent transferee that:\n(a) The warrantor is a person entitled to enforce the instrument;\n(b) All signatures on the instrument are authentic and authorized;\n(c) The instrument has not been altered;\n(d) The instrument is not subject to a defense or claim in recoupment of any party\nwhich can be asserted against the warrantor;\n(e) The warrantor has no knowledge of any insolvency proceeding commenced\nwith respect to the maker or acceptor or, in the case of an unaccepted draft, the\ndrawer; and\n(f) With respect to a remotely created item, that the person on whose account the\nitem is drawn authorized the issuance of the item in the am ount for which the\nitem is drawn.\n(2) A person to whom the warranties under subsection (1) of this section are made and\nwho took the instrument in good faith may recover from the warrantor as damages\nfor breach of warranty an amount equal to the loss suffered as a result of the breach,\nbut not more than the amount of the instrument plus expenses and loss of interest\nincurred as a result of the breach.\n(3) The warranties stated in subsection (1) of this section cannot be disclaimed with\nrespect to checks. Un less notice of a claim for breach of warranty is given to the\nwarrantor within thirty (30) days after the claimant has reason to know of the breach\nand the identity of the warrantor, the liability of the warrantor under subsection (2)\nof this section is di scharged to the extent of any loss caused by the delay in giving\nnotice of the claim.\n(4) A claim for relief for breach of warranty under this section accrues when the\nclaimant has reason to know of the breach.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33486","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:44Z","sha256":"bf75d8c7960e79c60197db48a2c02ed0ca5762ce3abbdb5c891be67109eaa806","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.3-415","next":"us-ky/krs-355.3-417"},"notice":"GroundRules: Original legal text. Not legal advice."}