reglab/housing_qa huggingface dataset:
IN Code § 26-1-3.1-416 (2021)
2021 Indiana Code|Title 26. Commercial Law|Article 1. Uniform Commercial Code|Chapter 3.1. Negotiable Instruments|26-1-3.1-416. Transfer Warranties

Sec. 416. (a) A person who transfers an instrument for consideration warrants to the transferee and, if the transfer is by endorsement, to any subsequent transferee that:(1) the warrantor is a person entitled to enforce the instrument;(2) all signatures on the instrument are authentic and authorized;(3) the instrument has not been altered;(4) the instrument is not subject to a defense or claim in recoupment of any party which can be asserted against the warrantor;(5) the warrantor has no knowledge of any insolvency proceeding commenced with respect to the maker or acceptor or, in the case of an unaccepted draft, the drawer; and(6) with respect to a remotely-created consumer item, the person on whose account the item is drawn authorized the issuance of the item in the amount for which the item is drawn.(b) A person to whom the warranties under subsection (a) are made and who took the instrument in good faith may recover from the warrantor as damages for breach of warranty an amount equal to the loss suffered as a result of the breach, but not more than the amount of the instrument plus expenses and loss of interest incurred as a result of the breach.(c) The warranties stated in subsection (a) 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 liability of the warrantor under subsection (b) is discharged to the extent of any loss caused by the delay in giving notice of the claim.(d) A cause of action for breach of warranty under this section accrues when the claimant has reason to know of the breach.As added by P.L.222-1993, SEC.5. Amended by P.L.135-2009, SEC.9.
IN Code § 26-1-3.1-418 (2021)
2021 Indiana Code|Title 26. Commercial Law|Article 1. Uniform Commercial Code|Chapter 3.1. Negotiable Instruments|26-1-3.1-418. Payment or Acceptance by Mistake

Sec. 418. (a) Except as provided in subsection (c), if the drawee of a draft pays or accepts the draft and the drawee acted on the mistaken belief that:(1) payment of the draft had not been stopped under IC 26-1-4-403; or(2) the signature of the drawer of the draft was authorized;the drawee may recover the amount of the draft from the person to whom or for whose benefit payment was made or, in the case of acceptance, may revoke the acceptance. Rights of the drawee under this subsection are not affected by failure of the drawee to exercise ordinary care in paying or accepting the draft.(b) Except as provided in subsection (c), if an instrument has been paid or accepted by mistake and the case is not covered by subsection (a), the person paying or accepting may, to the extent permitted by the law governing mistake and restitution:(1) recover the payment from the person to whom or for whose benefit payment was made; or(2) in the case of acceptance, may revoke the acceptance.(c) The remedies provided by subsection (a) or (b) may not be asserted against a person who took the instrument in good faith and for value or who in good faith changed position in reliance on the payment or acceptance. This subsection does not limit remedies provided by IC 26-1-3.1-417 or IC 26-1-4-407.(d) Notwithstanding IC 26-1-4-215, if an instrument is paid or accepted by mistake and the payor or acceptor recovers payment or revokes acceptance under subsection (a) or (b), the instrument is deemed not to have been paid or accepted and is treated as dishonored, and the person from whom payment is recovered has rights as a person entitled to enforce the dishonored instrument.As added by P.L.222-1993, SEC.5.
IN Code § 26-1-3.1-420 (2021)
2021 Indiana Code|Title 26. Commercial Law|Article 1. Uniform Commercial Code|Chapter 3.1. Negotiable Instruments|26-1-3.1-420. Conversion of Instrument

Sec. 420. (a) The law applicable to conversion of personal property applies to instruments. An instrument is also converted if it is taken by transfer, other than a negotiation, from a person not entitled to enforce the instrument or a bank makes or obtains payment with respect to the instrument for a person not entitled to enforce the instrument or receive payment. An action for conversion of an instrument may not be brought by:(1) the issuer or acceptor of the instrument; or(2) a payee or endorsee who did not receive delivery of the instrument either directly or through delivery to an agent or a co-payee.(b) Notwithstanding IC 34-24-3-1 or any other statute providing a measure of damages for conversion, in an action under subsection (a) for conversion of an instrument, the measure of liability is presumed to be the amount payable on the instrument, but recovery may not exceed the amount of the plaintiff's interest in the instrument.(c) A representative, other than a depositary bank, who has in good faith dealt with an instrument or its proceeds on behalf of one who was not the person entitled to enforce the instrument is not liable in conversion to that person beyond the amount of any proceeds that it has not paid out.As added by P.L.222-1993, SEC.5. Amended by P.L.1-1998, SEC.135.
IN Code § 26-1-3.1-501 (2021)
2021 Indiana Code|Title 26. Commercial Law|Article 1. Uniform Commercial Code|Chapter 3.1. Negotiable Instruments|26-1-3.1-501. Presentment

Sec. 501. (a) "Presentment" means a demand made by or on behalf of a person entitled to enforce an instrument:(1) to pay the instrument made to the drawee or a party obliged to pay the instrument or, in the case of a note or accepted draft payable at a bank, to the bank; or(2) to accept a draft made to the drawee.(b) The following rules are subject to IC 26-1-4, agreement of the parties, and clearing-house rules and the like:(1) Presentment may be made at the place of payment of the instrument and must be made at the place of payment if the instrument is payable at a bank in the United States; may be made by any commercially reasonable means, including an oral, written, or electronic communication; is effective when the demand for payment or acceptance is received by the person to whom presentment is made; and is effective if made to any one (1) of two (2) or more makers, acceptors, drawees, or other payors.(2) Upon demand of the person to whom presentment is made, the person making presentment must:(A) exhibit the instrument;(B) give reasonable identification and, if presentment is made on behalf of another person, reasonable evidence of authority to do so; and(C) sign a receipt on the instrument for any payment made or surrender the instrument if full payment is made.(3) Without dishonoring the instrument, the party to whom presentment is made may:(A) return the instrument for lack of a necessary endorsement; or(B) refuse payment or acceptance for failure of the presentment to comply with the terms of the instrument, an agreement of the parties, or other applicable law or rule.(4) The party to whom presentment is made may treat presentment as occurring on the next business day after the day of presentment if the party to whom presentment is made has established a cut-off hour not earlier than 2 p.m. for the receipt and processing of instruments presented for payment or acceptance and presentment is made after the cut-off hour.As added by P.L.222-1993, SEC.5.
IN Code § 26-1-3.1-502.5 (2021)
2021 Indiana Code|Title 26. Commercial Law|Article 1. Uniform Commercial Code|Chapter 3.1. Negotiable Instruments|26-1-3.1-502.5. Surcharge After Dishonor

Sec. 502.5. (a) Except as provided in subsection (b), a person to whom a check, a draft, an order, or like instrument is tendered may, if the instrument is dishonored or returned unpaid for any reason, charge and collect from the maker or drawer, or the person for whose benefit the instrument was given, an amount not to exceed twenty dollars ($20) plus an amount equal to the actual charge by the depository institution for each returned or dishonored instrument. The charge shall not be considered an interest charge, a finance charge, a time price differential, or any charge of a similar nature.(b) To the extent applicable to a federally chartered bank, if a check is dishonored, a bank, trust, banc, banco, or bancorp may not charge any party other than the maker or drawer of the check a fee in connection with the dishonoring of the check.As added by P.L.248-1995, SEC.3. Amended by P.L.213-2007, SEC.32.
IN Code § 26-1-3.1-503 (2021)
2021 Indiana Code|Title 26. Commercial Law|Article 1. Uniform Commercial Code|Chapter 3.1. Negotiable Instruments|26-1-3.1-503. Notice of Dishonor

Sec. 503. (a) The obligation of an endorser stated in IC 26-1-3.1-415(a) and the obligation of a drawer stated in IC 26-1-3.1-414(d) may not be enforced unless:(1) the endorser or drawer is given notice of dishonor of the instrument complying with this section; or(2) notice of dishonor is excused under IC 26-1-3.1-504(b).(b) Notice of dishonor may be given by any person; may be given by any commercially reasonable means, including an oral, written, or electronic communication; and is sufficient if it reasonably identifies the instrument and indicates that the instrument has been dishonored or has not been paid or accepted. Return of an instrument given to a bank for collection is sufficient notice of dishonor.(c) Subject to IC 26-1-3.1-504(c), with respect to an instrument taken for collection by a collecting bank, notice of dishonor must be given:(1) by the bank before midnight of the next banking day following the banking day on which the bank receives notice of dishonor of the instrument; or(2) by any other person within thirty (30) days following the day on which the person receives notice of dishonor.With respect to any other instrument, notice of dishonor must be given within thirty (30) days following the day on which dishonor occurs.As added by P.L.222-1993, SEC.5.
IN Code § 26-1-3.1-504 (2021)
2021 Indiana Code|Title 26. Commercial Law|Article 1. Uniform Commercial Code|Chapter 3.1. Negotiable Instruments|26-1-3.1-504. Excused Presentment and Notice of Dishonor

Sec. 504. (a) Presentment for payment or acceptance of an instrument is excused if:(1) the person entitled to present the instrument cannot with reasonable diligence make presentment;(2) the maker or acceptor has repudiated an obligation to pay the instrument or is dead or in insolvency proceedings;(3) by the terms of the instrument presentment is not necessary to enforce the obligation of endorsers or the drawer;(4) the drawer or endorser whose obligation is being enforced has waived presentment or otherwise has no reason to expect or right to require that the instrument be paid or accepted; or(5) the drawer instructed the drawee not to pay or accept the draft or the drawee was not obligated to the drawer to pay the draft.(b) Notice of dishonor is excused if:(1) by the terms of the instrument notice of dishonor is not necessary to enforce the obligation of a party to pay the instrument; or(2) the party whose obligation is being enforced waived notice of dishonor.A waiver of presentment is also a waiver of notice of dishonor.(c) Delay in giving notice of dishonor is excused if the delay was caused by circumstances beyond the control of the person giving the notice and the person giving the notice exercised reasonable diligence after the cause of the delay ceased to operate.As added by P.L.222-1993, SEC.5.
IN Code § 26-1-3.1-505 (2021)
2021 Indiana Code|Title 26. Commercial Law|Article 1. Uniform Commercial Code|Chapter 3.1. Negotiable Instruments|26-1-3.1-505. Evidence of Dishonor

Sec. 505. (a) The following are admissible as evidence and create a presumption of dishonor and of any notice of dishonor stated:(1) A document regular in form as provided in subsection (b) which purports to be a protest.(2) A purported stamp or writing of the drawee, payor bank, or presenting bank on or accompanying the instrument stating that acceptance or payment has been refused unless reasons for the refusal are stated and the reasons are not consistent with dishonor.(3) A book or record of the drawee, payor bank, or collecting bank, kept in the usual course of business which shows dishonor, even if there is no evidence of who made the entry.(b) A protest is a certificate of dishonor made by a United States consul or vice consul, or a notary public or other person authorized to administer oaths by the law of the place where dishonor occurs. It may be made upon information satisfactory to that person. The protest must identify the instrument and certify either that presentment has been made or, if not made, the reason why it was not made, and that the instrument has been dishonored by nonacceptance or nonpayment. The protest may also certify that notice of dishonor has been given to some or all parties.As added by P.L.222-1993, SEC.5.
IN Code § 26-1-3.1-601 (2021)
2021 Indiana Code|Title 26. Commercial Law|Article 1. Uniform Commercial Code|Chapter 3.1. Negotiable Instruments|26-1-3.1-601. Discharge and Effect of Discharge

Sec. 601. (a) The obligation of a party to pay the instrument is discharged as stated in IC 26-1-3.1 or by an act or agreement with the party which would discharge an obligation to pay money under a simple contract.(b) Discharge of the obligation of a party is not effective against a person acquiring rights of a holder in due course of the instrument without notice of the discharge.As added by P.L.222-1993, SEC.5.
IN Code § 26-1-3.1-602 (2021)
2021 Indiana Code|Title 26. Commercial Law|Article 1. Uniform Commercial Code|Chapter 3.1. Negotiable Instruments|26-1-3.1-602. Payment

Sec. 602. (a) Subject to subsection (e), an instrument is paid to the extent payment is made:(1) by or on behalf of a party obliged to pay the instrument; and(2) to a person entitled to enforce the instrument.(b) Subject to subsection (e), a note is paid to the extent payment is made by or on behalf of a party obliged to pay the note to a person that formerly was entitled to enforce the note only if at the time of the payment the party obliged to pay has not received adequate notification that the note has been transferred and that payment is to be made to the transferee. A notification is adequate only if it is signed by the transferor or the transferee, reasonably identifies the transferred note, and provides an address at which payments subsequently are to be made. Upon request, a transferee shall seasonably furnish reasonable proof that the note has been transferred. Unless the transferee complies with the request, a payment to the person that formerly was entitled to enforce the note is effective for purposes of subsection (c) even if the party obliged to pay the note has received a notification under this subsection.(c) Subject to subsection (e), to the extent a payment is made under subsections (a) and (b), the obligation of the party obliged to pay the instrument is discharged even though payment is made with knowledge of a claim to the instrument under IC 26-1-3.1-306 by another person.(d) Subject to subsection (e), a transferee, or any party that has acquired rights in the instrument directly or indirectly from a transferee, including any such party that has rights as a holder in due course, is considered to have notice of any payment that is made under subsection (b) after the date that the note is transferred to the transferee but before the party obliged to pay the note receives adequate notification of the transfer.(e) The obligation of a party to pay the instrument is not discharged under subsections (a) through (d) if:(1) a claim to the instrument under IC 26-1-3.1-306 is enforceable against the party receiving payment and (i) payment is made with knowledge by the payor that payment is prohibited by injunction or similar process of a court of competent jurisdiction, or (ii) in the case of an instrument other than a cashier's check, teller's check, or certified check, the party making payment accepted, from the person having a claim to the instrument, indemnity against loss resulting from refusal to pay the person entitled to enforce the instrument; or(2) the person making payment knows that the instrument is a stolen instrument and pays a person it knows is in wrongful possession of the instrument.(f) As used in this section, "signed", with respect to a record that is not a writing, includes the attachment to or logical association with the record of an electronic symbol, sound, or process with the present intent to adopt or accept the record.As added by P.L.222-1993, SEC.5. Amended by P.L.135-2009, SEC.12.
IN Code § 26-1-3.1-603 (2021)
2021 Indiana Code|Title 26. Commercial Law|Article 1. Uniform Commercial Code|Chapter 3.1. Negotiable Instruments|26-1-3.1-603. Tender of Payment

Sec. 603. (a) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect of tender is governed by principles of law applicable to tender of payment under a simple contract.(b) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument and the tender is refused, there is discharge, to the extent of the amount of the tender, of the obligation of an endorser or accommodation party having a right of recourse with respect to the obligation to which the tender relates.(c) If tender of payment of an amount due on an instrument is made to a person entitled to enforce the instrument, the obligation of the obligor to pay interest after the due date on the amount tendered is discharged. If presentment is required with respect to an instrument and the obligor is able and ready to pay on the due date at every place of payment stated in the instrument, the obligor is considered to have made tender of payment on the due date to the person entitled to enforce the instrument.As added by P.L.222-1993, SEC.5.
IN Code § 26-1-3.1-604 (2021)
2021 Indiana Code|Title 26. Commercial Law|Article 1. Uniform Commercial Code|Chapter 3.1. Negotiable Instruments|26-1-3.1-604. Discharge by Cancellation or Renunciation

Sec. 604. (a) A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument:(1) by an intentional voluntary act, such as surrender of the instrument to the party, destruction, mutilation, or cancellation of the instrument, cancellation or striking out of the party's signature, or the addition of words to the instrument indicating discharge; or(2) by agreeing not to sue or otherwise renouncing rights against the party by a signed record.(b) Cancellation or striking out of an endorsement under subsection (a) does not affect the status and rights of a party derived from the endorsement.(c) As used in this section, "signed", with respect to a record that is not a writing, includes the attachment to or logical association with the record of an electronic symbol, sound, or process with the present intent to adopt or accept the record.As added by P.L.222-1993, SEC.5. Amended by P.L.135-2009, SEC.13.
IN Code § 26-1-4-101 (2021)
2021 Indiana Code|Title 26. Commercial Law|Article 1. Uniform Commercial Code|Chapter 4. Bank Deposits and Collections|26-1-4-101. Short Title

Sec. 101. IC 26-1-4 may be cited as Uniform Commercial Code ─ Bank Deposits and Collections.Formerly: Acts 1963, c.317, s.4-101. As amended by P.L.152-1986, SEC.205; P.L.222-1993, SEC.6.
IN Code § 26-1-4-102 (2021)
2021 Indiana Code|Title 26. Commercial Law|Article 1. Uniform Commercial Code|Chapter 4. Bank Deposits and Collections|26-1-4-102. Applicability

Sec. 102. (a) To the extent that items within IC 26-1-4 are also within IC 26-1-3.1 and IC 26-1-8.1, they are subject to IC 26-1-3.1 and IC 26-1-8.1. If there is conflict, IC 26-1-4 governs IC 26-1-3.1, but IC 26-1-8.1 governs IC 26-1-4.(b) The liability of a bank for action or nonaction with respect to an item handled by it for purposes of presentment, payment, or collection is governed by the law of the place where the bank is located. In the case of action or nonaction by or at a branch or separate office of a bank, its liability is governed by the law of the place where the branch or separate office is located.Formerly: Acts 1963, c.317, s.4-102. As amended by P.L.152-1986, SEC.206; P.L.222-1993, SEC.7; P.L.247-1995, SEC.5.
IN Code § 26-1-4-102.5 (2021)
2021 Indiana Code|Title 26. Commercial Law|Article 1. Uniform Commercial Code|Chapter 4. Bank Deposits and Collections|26-1-4-102.5. Application of Bank Provisions to Supervised Financial Organizations

Sec. 102.5. (a) As used in this section, "supervised financial organization" means a person, other than an insurance company or other organization primarily engaged in an insurance business, that is:(1) organized, chartered, or holding an authorization certificate under the laws of a state or of the United States that authorizes the person to make loans and to receive deposits, including a savings, share, certificate, or deposit account; and(2) subject to supervision by an official or agency of a state or of the United States.(b) The provisions of IC 26-1-4 which apply to a bank apply equally to any supervised financial organization which is authorized by state or federal law to permit persons to make withdrawals or payments from accounts by negotiable instruments.As added by Acts 1981, P.L.231, SEC.2. Amended by P.L.152-1986, SEC.207; P.L.35-2010, SEC.95.
IN Code § 26-1-4-103 (2021)
2021 Indiana Code|Title 26. Commercial Law|Article 1. Uniform Commercial Code|Chapter 4. Bank Deposits and Collections|26-1-4-103. Variation by Agreement; Measure of Damages; Action Constituting Ordinary Care

Sec. 103. (a) The effect of the provisions of IC 26-1-4 may be varied by agreement, but the parties to the agreement cannot disclaim a bank's responsibility for its lack of good faith or failure to exercise ordinary care or limit the measure of damages for the lack or failure. However, the parties may determine by agreement the standards by which the bank's responsibility is to be measured if those standards are not manifestly unreasonable.(b) Federal reserve regulations and operating circulars, clearing-house rules, and the like have the effect of agreements under subsection (a), whether or not specifically assented to by all parties interested in items handled.(c) Action or nonaction approved by IC 26-1-4 or pursuant to federal reserve regulations or operating circulars is the exercise of ordinary care and, in the absence of special instructions, action or nonaction consistent with clearing-house rules and the like or with a general banking usage not disapproved by IC 26-1-4 is prima facie the exercise of ordinary care.(d) The specification or approval of certain procedures by IC 26-1-4 is not disapproval of other procedures that may be reasonable under the circumstances.(e) The measure of damages for failure to exercise ordinary care in handling an item is the amount of the item reduced by an amount that could not have been realized by the exercise of ordinary care. If there is also bad faith it includes any other damages the party suffered as a proximate consequence.Formerly: Acts 1963, c.317, s.4-103. As amended by P.L.152-1986, SEC.208; P.L.222-1993, SEC.8.