{"data":{"id":"us-ok/okla.-stat.-tit.-12a-12a-4-207","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 12A, § 12A-4-207","heading":"Transfer Warranties","body":"TRANSFER WARRANTIES\n\n(a) A customer or collecting bank that transfers an item and\n\nreceives a settlement or other consideration warrants to the\n\ntransferee and to any subsequent collecting bank that:\n\n(1) The warrantor is a person entitled to enforce the\n\nitem;\n\n(2) All signatures on the item are authentic and\n\nauthorized;\n\n(3) The item has not been altered;\n\n(4) The item is not subject to a defense or claim in\n\nrecoupment (subsection (a) of Section 3-305 of this\n\ntitle) of any party that can be asserted against the\n\nwarrantor; and\n\n(5) The warrantor has no knowledge of any insolvency\n\nproceeding commenced with respect to the maker or\n\nacceptor or, in the case of an unaccepted draft, the\n\ndrawer.\n\n(b) If an item is dishonored, a customer or collecting bank\n\ntransferring the item and receiving settlement or other\n\nconsideration is obliged to pay the amount due on the item (i)\n\naccording to the terms of the item at the time it was transferred,\n\nor (ii) if the transfer was of an incomplete item, according to its\n\nterms when completed as stated in Sections 3-115 and 3-407 of this\n\ntitle. The obligation of a transferor is owed to the transferee and\n\nto any subsequent collecting bank that takes the item in good faith.\n\nA transferor cannot disclaim its obligation under this subsection by\n\nan indorsement stating that it is made \"without recourse\" or\n\notherwise disclaiming liability.\n\n(c) A person to whom the warranties under subsection (a) of\n\nthis section are made and who took the item in good faith may\n\nrecover from the warrantor as damages for breach of warranty an\n\namount equal to the loss suffered as a result of the breach, but not\n\nmore than the amount of the item plus expenses and loss of interest\n\nincurred as a result of the breach.\n\n(d) The warranties stated in subsection (a) of this section\n\ncannot be disclaimed with respect to checks. Unless notice of a\n\nclaim for breach of warranty is given to the warrantor within thirty\n\n(30) days after the claimant has reason to know of the breach and\n\nthe identity of the warrantor, the warrantor is discharged to the\n\nextent of any loss caused by the delay in giving notice of the\n\nclaim.\n\n(e) A claim for relief for breach of warranty under this\n\nsection accrues when the claimant has reason to know of the breach.","path":["OK Code","Title 12A"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os12A.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"72d96a1dfd038eebcaa474b17ff60088f6350bc45514e5395098faa9f22dfcad","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-12a-12a-4-206","next":"us-ok/okla.-stat.-tit.-12a-12a-4-208"},"notice":"GroundRules: Original legal text. Not legal advice."}