In addition to the warranties mentioned above, the subsequent transferee or collecting bank has the advantage of warranted signatures on the instrument, lack of a defense against payment, and lack of knowledge of insolvency of the maker, acceptor, or drawer of an instrument. These warranties constitute the major obligations of persons and banks under Article 4. Each person or bank has certain responsibilities to the person who takes the instrument offered for the validity of that instrument. Warranties change to a degree under amended Article 4. Transfer warranties to a subsequent transferee or collecting bank remain much the same.
Presentment warranties apply with no exception for holder in due course status.
Damages are more specific, as well. These are warranties from one who encodes information with respect to an item that the information is correctly encoded. Retention warranties refer to those who present items pursuant to a truncation agreement and retain the original instrument while transmitting an image of it as presentation for payment. This new warranty notion follows from the concept of truncation agreement in amended Article 4. Another important amendment to Article 4 takes into account the practice of providing customers an itemized statement of items credited and debited against the customer's account in lieu of providing the actual item to the customer with the statement.