{"data":{"id":"us-ky/krs-355.4-208","jurisdiction":"us-ky","citation":"KRS 355.4-208","heading":"Presentment warranties.","body":"(1) (a) If an unaccepted draft is presented to the drawee for payment or acceptance\nand the drawee pays or accepts the draft,\n1. The person obtaining payment or acceptance, at the time of presentment;\nand\n2. A previous transferor of the draft, at the time of transfer,\nwarrant to the drawee that pays or accepts the draft in good faith the\nconditions set out in paragraph (b) of this subsection.\n(b) 1. The warrantor is, or was, at the time the warrantor transferred the draft,\na person entitled to enforce the draft or  authorized to obtain payment or\nacceptance of the draft on behalf of a person entitled to enforce the\ndraft;\n2. The draft has not been altered;\n3. The warrantor has no knowledge that the signature of the purported\ndrawer of the draft is unauthorized; and\n4. With respect to any remotely created item, that the person on whose\naccount the item is drawn authorized the issuance of the item in the\namount for which the item is drawn.\n(2) (a) A drawee making payment may recover from a warrantor damages for breach\nof warranty equal to the amount paid by the drawee less the amount the\ndrawee received or is entitled to receive from the drawer because of the\npayment. In addition, the drawee is entitled to compensation for expenses,\nincluding reasonable attorney's fees,  and loss of interest resulting from the\nbreach.\n(b) The right of the drawee to recover damages under this subsection is not\naffected by any failure of the drawee to exercise ordinary care in making\npayment.\n(c) If the drawee accepts the draft:\n1. Breach of warranty is a defense to the obligation of the acceptor; and\n2. If the acceptor makes payment with respect to the draft, the acceptor is\nentitled to recover from a warrantor for breach of warranty the amounts\nstated in this subsection.\n(3) If a drawee as serts a claim for breach of warranty under subsection (1) of this\nsection based on an unauthorized indorsement of the draft or an alteration of the\ndraft, the warrantor may defend by proving that the indorsement is effective under\nKRS 355.3-404 or 355.3 -405 or the drawer is precluded under KRS 355.3 -406 or\n355.4-406 from asserting against the drawee the unauthorized indorsement or\nalteration.\n(4) (a) If:\n1. A dishonored draft is presented for payment to the drawer or an\nindorser; or\n2. Any other item is pre sented for payment to a party obliged to pay the\nitem;\nand the item is paid, the person obtaining payment and a prior transferor of\nthe item warrant to the person making payment in good faith that the\nwarrantor is, or was, at the time the warrantor transf erred the item, a person\nentitled to enforce the item or authorized to obtain payment on behalf of a\nperson entitled to enforce the item.\n(b) The person making payment may recover from any warrantor for breach of\nwarranty an amount equal to the amount paid  plus expenses, including\nreasonable attorney's fees, and loss of interest resulting from the breach.\n(5) (a) The warranties stated in subsections (1) and (4) of this section cannot be\ndisclaimed with respect to checks.\n(b) Unless notice of a claim for bre ach of warranty is given to the warrantor\nwithin thirty (30) days after the claimant has reason to know of the breach and\nthe identity of the warrantor, the warrantor is discharged to the extent of any\nloss caused by the delay in giving notice of the claim.\n(6) 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=55649","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:45Z","sha256":"e68965e3d76aa6e9a0105a52006dcb991009ca076e8f9d7b4bc66b2082a6fca1","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.4-207","next":"us-ky/krs-355.4-209"},"notice":"GroundRules: Original legal text. Not legal advice."}