reglab/statecodes huggingface dataset:
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 3 - UNIFORM COMMERCIAL CODE - NEGOTIABLE INSTRUMENTS (§§ 75-3-101 — 75-3-801) › Part 4 - LIABILITY OF PARTIES (§§ 75-3-401 — 75-3-420) › Section 75-3-413 - Obligation of acceptor

(a)
The acceptor of a draft is obliged to pay the draft (i) according to its terms at the time it was accepted, even though the acceptance states that the draft is payable "as originally drawn" or equivalent terms, (ii) if the acceptance varies the terms of the draft, according to the terms of the draft as varied, or (iii) if the acceptance is of a draft that is an incomplete instrument, according to its terms when completed, to the extent stated in Sections
75-3-115
and
75-3-407
. The obligation is owed to a person entitled to enforce the draft or to the drawer or an indorser who paid the draft under Section
75-3-414
or
75-3-415
.
(b)
If the certification of a check or other acceptance of a draft states the amount certified or accepted, the obligation of the acceptor is that amount. If (i) the certification or acceptance does not state an amount, (ii) the amount of the instrument is subsequently raised, and (iii) the instrument is then negotiated to a holder in due course, the obligation of the acceptor is the amount of the instrument at the time it was taken by the holder in due course.
Former §
75-3-413
: Codes, 1942, § 41A:3-413; Laws, 1966, ch. 316, § 3-413; Laws, 1992, ch. 420, § 51, eff. 1/1/1993.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 3 - UNIFORM COMMERCIAL CODE - NEGOTIABLE INSTRUMENTS (§§ 75-3-101 — 75-3-801) › Part 4 - LIABILITY OF PARTIES (§§ 75-3-401 — 75-3-420) › Section 75-3-414 - Obligation of drawer

(a)
This section does not apply to cashier's checks or other drafts drawn on the drawer.
(b)
If an unaccepted draft is dishonored, the drawer is obliged to pay the draft (i) according to its terms at the time it was issued or, if not issued, at the time it first came into possession of a holder, or (ii) if the drawer signed an incomplete instrument, according to its terms when completed, to the extent stated in Sections
75-3-115
and
75-3-407
. The obligation is owed to a person entitled to enforce the draft or to an indorser who paid the draft under Section
75-3-415
.
(c)
If a draft is accepted by a bank, the drawer is discharged, regardless of when or by whom acceptance was obtained.
(d)
If a draft is accepted and the acceptor is not a bank, the obligation of the drawer to pay the draft if the draft is dishonored by the acceptor is the same as the obligation of an indorser under Section
75-3-415(a) and (c)
.
(e)
If a draft states that it is drawn "without recourse" or otherwise disclaims liability of the drawer to pay the draft, the drawer is not liable under subsection (b) to pay the draft if the draft is not a check. A disclaimer of the liability stated in subsection (b) is not effective if the draft is a check.
(f)
If (i) a check is not presented for payment or given to a depositary bank for collection within thirty (30) days after its date, (ii) the drawee suspends payments after expiration of the 30-day period without paying the check, and (iii) because of the suspension of payments, the drawer is deprived of funds maintained with the drawee to cover payment of the check, the drawer to the extent deprived of funds may discharge its obligation to pay the check by assigning to the person entitled to enforce the check the rights of the drawer against the drawee with respect to the funds.
Former §
75-3-414
: Codes, 1942, § 41A:3-414; Laws, 1966, ch. 316, § 3-414; Laws, 1992, ch. 420, § 52, eff. 1/1/1993.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 3 - UNIFORM COMMERCIAL CODE - NEGOTIABLE INSTRUMENTS (§§ 75-3-101 — 75-3-801) › Part 4 - LIABILITY OF PARTIES (§§ 75-3-401 — 75-3-420) › Section 75-3-415 - Obligation of indorser

(a)
Subject to subsections (b), (c), and (d) and to Section
75-3-419(d)
, if an instrument is dishonored, an indorser is obliged to pay the amount due on the instrument (i) according to the terms of the instrument at the time it was indorsed, or (ii) if the indorser indorsed an incomplete instrument, according to its terms when completed, to the extent stated in Sections
75-3-115
and
75-3-407
. The obligation of the indorser is owed to a person entitled to enforce the instrument or to a subsequent indorser who paid the instrument under this section.
(b)
If an indorsement states that it is made "without recourse" or otherwise disclaims liability of the indorser, the indorser is not liable under subsection (a) to pay the instrument.
(c)
If notice of dishonor of an instrument is required by Section
75-3-503
and notice of dishonor complying with that section is not given to an indorser, the liability of the indorser under subsection (a) is discharged.
(d)
If a draft is accepted by a bank after an indorsement is made, the liability of the indorser under subsection (a) is discharged.
Former §
75-3-415
: Codes, 1942, § 41A:3-415; Laws, 1966, ch. 316, § 3-415; Laws, 1992, ch. 420, § 53; Laws, 2010, ch. 506, § 20, eff. 7/1/2010.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 3 - UNIFORM COMMERCIAL CODE - NEGOTIABLE INSTRUMENTS (§§ 75-3-101 — 75-3-801) › Part 4 - LIABILITY OF PARTIES (§§ 75-3-401 — 75-3-420) › Section 75-3-416 - Transfer warranties

(a)
A person who transfers an instrument for consideration warrants to the transferee and, if the transfer is by indorsement, 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 check, that the person on whose account the remotely created check is drawn authorized the issuance of the check in the amount stated on the check and to the payee stated on the check.
(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.
Former §
75-3-416
: Codes, 1942, § 41A:3-416; Laws, 1966, ch. 316, § 3-416; Laws, 1992, ch. 420, § 54; Laws, 2010, ch. 506, § 21, eff. 7/1/2010.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 3 - UNIFORM COMMERCIAL CODE - NEGOTIABLE INSTRUMENTS (§§ 75-3-101 — 75-3-801) › Part 4 - LIABILITY OF PARTIES (§§ 75-3-401 — 75-3-420) › Section 75-3-418 - Payment or acceptance by mistake

(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 (i) payment of the draft had not been stopped pursuant to Section
75-4-403
or (ii) 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, (i) recover the payment from the person to whom or for whose benefit payment was made or (ii) 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 Section
75-3-417
or
75-4-407
.
(d)
Notwithstanding Section
75-4-215
, 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.
Former §
75-3-418
: Codes, 1942, § 41A:3-418; Laws, 1966, ch. 316, § 3-418; Laws, 1992, ch. 420, § 56, eff. 1/1/1993.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 3 - UNIFORM COMMERCIAL CODE - NEGOTIABLE INSTRUMENTS (§§ 75-3-101 — 75-3-801) › Part 4 - LIABILITY OF PARTIES (§§ 75-3-401 — 75-3-420) › Section 75-3-420 - Conversion of instrument

(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 (i) the issuer or acceptor of the instrument or (ii) a payee or indorsee who did not receive delivery of the instrument either directly or through delivery to an agent or a co-payee.
(b)
In an action under subsection (a), 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.
Laws, 1992, ch. 420, § 58, eff. 1/1/1993.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 3 - UNIFORM COMMERCIAL CODE - NEGOTIABLE INSTRUMENTS (§§ 75-3-101 — 75-3-801) › Part 5 - DISHONOR (§§ 75-3-501 — 75-3-506) › Section 75-3-501 - Presentment

(a)
"Presentment" means a demand made by or on behalf of a person entitled to enforce an instrument (i) 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 (ii) to accept a draft made to the drawee.
(b)
The following rules are subject to Chapter 4, agreement of the parties, and clearinghouse 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 (i) exhibit the instrument, (ii) give reasonable identification and, if presentment is made on behalf of another person, reasonable evidence of authority to do so, and (iii) 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 (i) return the instrument for lack of a necessary indorsement, or (ii) 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.
Former §
75-3-501
: Codes, 1942, § 41A:3-501; Laws, 1966, ch. 316, § 3-501; Laws, 1992, ch. 420, § 59, eff. 1/1/1993.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 3 - UNIFORM COMMERCIAL CODE - NEGOTIABLE INSTRUMENTS (§§ 75-3-101 — 75-3-801) › Part 5 - DISHONOR (§§ 75-3-501 — 75-3-506) › Section 75-3-503 - Notice of dishonor

(a)
The obligation of an indorser stated in Section
75-3-415(a)
and the obligation of a drawer stated in Section
75-3-414(d)
may not be enforced unless (i) the indorser or drawer is given notice of dishonor of the instrument complying with this section or (ii) notice of dishonor is excused under Section
75-3-504(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 Section
75-3-504(c)
, with respect to an instrument taken for collection by a collecting bank, notice of dishonor must be given (i) 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 (ii) 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.
Former §
75-3-503
: Codes, 1942, § 41A:3-503; Laws, 1966, ch. 316, § 3-503; Laws, 1992, ch. 420, § 61, eff. 1/1/1993.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 3 - UNIFORM COMMERCIAL CODE - NEGOTIABLE INSTRUMENTS (§§ 75-3-101 — 75-3-801) › Part 5 - DISHONOR (§§ 75-3-501 — 75-3-506) › Section 75-3-504 - Excused presentment and notice of dishonor

(a)
Presentment for payment or acceptance of an instrument is excused if (i) the person entitled to present the instrument cannot with reasonable diligence make presentment, (ii) the maker or acceptor has repudiated an obligation to pay the instrument or is dead or in insolvency proceedings, (iii) by the terms of the instrument presentment is not necessary to enforce the obligation of indorsers or the drawer, (iv) the drawer or indorser 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 (v) 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 (i) by the terms of the instrument notice of dishonor is not necessary to enforce the obligation of a party to pay the instrument, or (ii) 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.
Former §
75-3-504
: Codes, 1942, § 41A:3-504; Laws, 1966, ch. 316, § 3-504; Laws, 1992, ch. 420, § 62, eff. 1/1/1993.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 3 - UNIFORM COMMERCIAL CODE - NEGOTIABLE INSTRUMENTS (§§ 75-3-101 — 75-3-801) › Part 5 - DISHONOR (§§ 75-3-501 — 75-3-506) › Section 75-3-505 - Evidence of dishonor

(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.
Former §
75-3-505
: Codes, 1942, § 41A:3-505; Laws, 1966, ch. 316, § 3-505; Laws, 1992, ch. 420, § 63, eff. 1/1/1993.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 3 - UNIFORM COMMERCIAL CODE - NEGOTIABLE INSTRUMENTS (§§ 75-3-101 — 75-3-801) › Part 5 - DISHONOR (§§ 75-3-501 — 75-3-506) › Section 75-3-506 - through 75-3-511 - [Repealed]

Repealed by Laws, 1992, ch. 420, § 112, eff. 1/1/1993.
§ 75-3-506. [Codes, 1942, § 41A:3-506; Laws, 1966, ch. 316, § 3-506] § 75-3-507. [Codes, 1942, § 41A:3-507; Laws, 1966, ch. 316, § 3-507] § 75-3-508. [Codes, 1942, § 41A:3-508; Laws, 1966, ch. 316, § 3-508] § 75-3-509. [Codes, 1942, § 41A:3-509; Laws, 1966, ch. 316, § 3-509] § 75-3-510. [Codes, 1942, § 41A:3-510; Laws, 1966, ch. 316, § 3-510] § 75-3-511. [Codes, 1942, § 41A:3-511; Laws, 1966, ch. 316, § 3-511]
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 3 - UNIFORM COMMERCIAL CODE - NEGOTIABLE INSTRUMENTS (§§ 75-3-101 — 75-3-801) › Part 6 - DISCHARGE AND PAYMENT (§§ 75-3-601 — 75-3-606) › Section 75-3-601 - Discharge and effect of discharge

(a)
The obligation of a party to pay the instrument is discharged as stated in this chapter 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.
Former §
75-3-601
: Codes, 1942, § 41A:3-601; Laws, 1966, ch. 316, § 3-601; Laws, 1992, ch. 420, § 64, eff. 1/1/1993.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 3 - UNIFORM COMMERCIAL CODE - NEGOTIABLE INSTRUMENTS (§§ 75-3-101 — 75-3-801) › Part 6 - DISCHARGE AND PAYMENT (§§ 75-3-601 — 75-3-606) › Section 75-3-602 - Payment

(a)
Subject to subsection (e), an instrument is paid to the extent payment is made by or on behalf of a party obliged to pay the instrument, and 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 made in a record, a transferee shall seasonably furnish reasonable proof that the note has been transferred.
(c)
Subject to subsection (e), to the extent of a payment 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 Section
75-3-306
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 deemed 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 Section
75-3-306
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.
Former §
75-3-602
: Codes, 1942, § 41A:3-602; Laws, 1966, ch. 316, § 3-602; Laws, 1992, ch. 420, § 65; Laws, 2010, ch. 506, § 24, eff. 7/1/2010.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 3 - UNIFORM COMMERCIAL CODE - NEGOTIABLE INSTRUMENTS (§§ 75-3-101 — 75-3-801) › Part 6 - DISCHARGE AND PAYMENT (§§ 75-3-601 — 75-3-606) › Section 75-3-603 - Tender of payment

(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 indorser 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 deemed to have made tender of payment on the due date to the person entitled to enforce the instrument.
Former §
75-3-603
: Codes, 1942, § 41A:3-603; Laws, 1966, ch. 316, § 3-603; Laws, 1992, ch. 420, § 66, eff. 1/1/1993.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 3 - UNIFORM COMMERCIAL CODE - NEGOTIABLE INSTRUMENTS (§§ 75-3-101 — 75-3-801) › Part 6 - DISCHARGE AND PAYMENT (§§ 75-3-601 — 75-3-606) › Section 75-3-604 - Discharge by cancellation or renunciation

(a)
A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument (i) 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 (ii) by agreeing not to sue or otherwise renouncing rights against the party by a signed record.
(b)
Cancellation or striking out of an indorsement pursuant to subsection (a) does not affect the status and rights of a party derived from the indorsement.
(c)
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.
Former §
75-3-604
: Codes, 1942, § 41A:3-604; Laws, 1966, ch. 316, § 3-604; Laws, 1992, ch. 420, § 67; Laws, 2010, ch. 506, § 25, eff. 7/1/2010.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 3 - UNIFORM COMMERCIAL CODE - NEGOTIABLE INSTRUMENTS (§§ 75-3-101 — 75-3-801) › Part 6 - DISCHARGE AND PAYMENT (§§ 75-3-601 — 75-3-606) › Section 75-3-606 - [Repealed]

Repealed by Laws, 1992, ch. 420, § 112, eff. 1/1/1993.
Codes, 1942, § 41A:3-606; Laws, 1966, ch. 316, § 3-606.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 3 - UNIFORM COMMERCIAL CODE - NEGOTIABLE INSTRUMENTS (§§ 75-3-101 — 75-3-801) › Part 7 - ADVICE OF INTERNATIONAL SIGHT DRAFT [Repealed] (§ 75-3-701) › Section 75-3-701 - [Repealed]

Repealed by Laws, 1992, ch. 420, § 112, eff. 1/1/1993.
Codes, 1942, § 41A:3-701; Laws, 1966, ch. 316, § 3-701.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 3 - UNIFORM COMMERCIAL CODE - NEGOTIABLE INSTRUMENTS (§§ 75-3-101 — 75-3-801) › Part 8 - MISCELLANEOUS [Repealed] (§ 75-3-801) › Section 75-3-801 - through 75-3-805 - [Repealed]

Repealed by Laws, 1992, ch. 420, § 112, eff. 1/1/1993.
§ 75-3-801. [Codes, 1942, § 41A:3-801; Laws, 1966, ch. 316, § 3-801] § 75-3-802. [Codes, 1942, § 41A:3-802; Laws, 1966, ch. 316, § 3-802] § 75-3-803. [Codes, 1942, § 41A:3-803; Laws, 1966, ch. 316, § 3-803] § 75-3-804. [Codes, 1942, § 41A:3-804; Laws, 1966, ch. 316, § 3-804] § 75-3-805. [Codes, 1942, § 41A:3-805; Laws, 1966, ch. 316, § 3-805]
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 4 - UNIFORM COMMERCIAL CODE-BANK DEPOSITS AND COLLECTIONS (§§ 75-4-101 — 75-4-504) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 75-4-101 — 75-4-111) › Section 75-4-101 - Short title

This chapter may be cited as Uniform Commercial Code-Bank Deposits and Collections.
Laws, 1942, § 41A:4-101; Laws, 1966, ch. 316, § 4-101; Laws, 1992, ch. 420, § 72, eff. 1/1/1993.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 4 - UNIFORM COMMERCIAL CODE-BANK DEPOSITS AND COLLECTIONS (§§ 75-4-101 — 75-4-504) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 75-4-101 — 75-4-111) › Section 75-4-102 - Applicability

(a)
To the extent that items within this chapter are also within Chapters 3 and 8, they are subject to those chapters. If there is conflict, this chapter governs Chapter 3, but Chapter 8 governs this chapter.
(b)
The liability of a bank for action or non-action 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 non-action 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.
Codes, 1942, § 41A:4-102; Laws, 1966, ch. 316, § 4-102; Laws, 1992, ch. 420, § 73, eff. 1/1/1993.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 4 - UNIFORM COMMERCIAL CODE-BANK DEPOSITS AND COLLECTIONS (§§ 75-4-101 — 75-4-504) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 75-4-101 — 75-4-111) › Section 75-4-103 - Variation by agreement; measure of damages; action constituting ordinary care

(a)
The effect of the provisions of this chapter 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, clearinghouse 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 non-action approved by this chapter or pursuant to Federal Reserve regulations or operating circulars is the exercise of ordinary care and, in the absence of special instructions, action or non-action consistent with clearinghouse rules and the like or with a general banking usage not disapproved by this chapter, is prima facie the exercise of ordinary care.
(d)
The specification or approval of certain procedures by this chapter 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.
Codes, 1942, § 41A:4-103; Laws, 1966, ch. 316, § 4-103; Laws, 1992, ch. 420, § 74, eff. 1/1/1993.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 4 - UNIFORM COMMERCIAL CODE-BANK DEPOSITS AND COLLECTIONS (§§ 75-4-101 — 75-4-504) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 75-4-101 — 75-4-111) › Section 75-4-105 - Definitions of types of banks

In this chapter:
(1)
[Reserved]
(2)
"Depositary bank" means the first bank to take an item even though it is also the payor bank, unless the item is presented for immediate payment over the counter.
(3)
"Payor bank" means a bank that is the drawee of a draft.
(4)
"Intermediary bank" means a bank to which an item is transferred in course of collection except the depositary or payor bank.
(5)
"Collecting bank" means a bank handling an item for collection except the payor bank.
(6)
"Presenting bank" means a bank presenting an item except a payor bank.
Codes, 1942, § 41A:4-105; Laws, 1966, ch. 316, § 4-105; Laws, 1992, ch. 420, § 76; Laws, 2010, ch. 506, § 28, eff. 7/1/2010.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 4 - UNIFORM COMMERCIAL CODE-BANK DEPOSITS AND COLLECTIONS (§§ 75-4-101 — 75-4-504) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 75-4-101 — 75-4-111) › Section 75-4-106 - Payable through or payable at bank; collecting bank

(a)
If an item states that it is "payable through" a bank identified in the item, (i) the item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item, and (ii) the item may be presented for payment only by or through the bank.
(b)
If an item states that it is "payable at" a bank identified in the item, (i) the item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item, and (ii) the item may be presented for payment only by or through the bank.
(c)
If a draft names a nonbank drawee and it is unclear whether a bank named in the draft is a co-drawee or a collecting bank, the bank is a collecting bank.
Laws, 1992, ch. 420, § 77, eff. 1/1/1993.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 4 - UNIFORM COMMERCIAL CODE-BANK DEPOSITS AND COLLECTIONS (§§ 75-4-101 — 75-4-504) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 75-4-101 — 75-4-111) › Section 75-4-107 - Separate office of bank

A branch or separate office of a bank is a separate bank for the purpose of computing the time within which and determining the place at or to which action may be taken or notices or orders must be given under this chapter and under Chapter 3.
Formerly §
75-4-106
: Codes, 1942, § 41A:4-106; Laws, 1966, ch. 316, § 4-106; Laws, 1992, ch. 420, § 78, eff. 1/1/1993.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 4 - UNIFORM COMMERCIAL CODE-BANK DEPOSITS AND COLLECTIONS (§§ 75-4-101 — 75-4-504) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 75-4-101 — 75-4-111) › Section 75-4-108 - Time of receipt of items

(a)
For the purpose of allowing time to process items, prove balances, and make the necessary entries on its books to determine its position for the day, a bank may fix an afternoon hour of 2 P.M. or later as a cutoff hour for the handling of money and items and the making of entries on its books.
(b)
An item or deposit of money received on any day after a cutoff hour so fixed or after the close of the banking day may be treated as being received at the opening of the next banking day.
Formerly §
75-4-107
: Codes, 1942, § 41A:4-107; Laws, 1966, ch. 316, § 4-107; Laws, 1992, ch. 420, § 79, eff. 1/1/1993.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 4 - UNIFORM COMMERCIAL CODE-BANK DEPOSITS AND COLLECTIONS (§§ 75-4-101 — 75-4-504) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 75-4-101 — 75-4-111) › Section 75-4-109 - Delays

(a)
Unless otherwise instructed, a collecting bank in a good faith effort to secure payment of a specific item drawn on a payor other than a bank, and with or without the approval of any person involved, may waive, modify, or extend time limits imposed or permitted by this code for a period not exceeding two (2) additional banking days without discharge of drawers or indorsers or liability to its transferor or a prior party.
(b)
Delay by a collecting bank or payor bank beyond time limits prescribed or permitted by this code or by instructions is excused if (i) the delay is caused by interruption of communication or computer facilities, suspension of payments by another bank, war, emergency conditions, failure of equipment, or other circumstances beyond the control of the bank, and (ii) the bank exercises such diligence as the circumstances require.
Formerly §
75-4-108
: Codes, 1942, § 41A:4-108; Laws, 1966, ch. 316, § 4-108; Laws, 1992, ch. 420, § 80, eff. 1/1/1993.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 4 - UNIFORM COMMERCIAL CODE-BANK DEPOSITS AND COLLECTIONS (§§ 75-4-101 — 75-4-504) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 75-4-101 — 75-4-111) › Section 75-4-110 - Electronic presentment

(a)
"Agreement for electronic presentment" means an agreement, clearinghouse rule, or Federal Reserve regulation or operating circular, providing that presentment of an item may be made by transmission of an image of an item or information describing the item ("presentment notice") rather than delivery of the item itself. The agreement may provide for procedures governing retention, presentment, payment, dishonor, and other matters concerning items subject to the agreement.
(b)
Presentment of an item pursuant to an agreement for presentment is made when the presentment notice is received.
(c)
If presentment is made by presentment notice, a reference to "item" or "check" in this chapter means the presentment notice unless the context otherwise indicates.
Laws, 1992, ch. 420, § 81, eff. 1/1/1993.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 4 - UNIFORM COMMERCIAL CODE-BANK DEPOSITS AND COLLECTIONS (§§ 75-4-101 — 75-4-504) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 75-4-101 — 75-4-111) › Section 75-4-111 - Statute of limitations

An action to enforce an obligation, duty, or right arising under this chapter must be commenced within three (3) years after the cause of action accrues.
Laws, 1992, ch. 420, § 82, eff. 1/1/1993.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 4 - UNIFORM COMMERCIAL CODE-BANK DEPOSITS AND COLLECTIONS (§§ 75-4-101 — 75-4-504) › Part 2 - COLLECTION OF ITEMS: DEPOSITARY AND COLLECTING BANKS (§§ 75-4-201 — 75-4-216) › Section 75-4-201 - Status of collecting bank as agent and provisional status of credits; applicability of chapter; item indorsed "pay any bank."

(a)
Unless a contrary intent clearly appears and before the time that a settlement given by a collecting bank for an item is or becomes final, the bank, with respect to the item, is an agent or sub-agent of the owner of the item and any settlement given for the item is provisional. This provision applies regardless of the form of indorsement or lack of indorsement and even though credit given for the item is subject to immediate withdrawal as of right or is in fact withdrawn; but the continuance of ownership of an item by its owner and any rights of the owner to proceeds of the item are subject to rights of a collecting bank, such as those resulting from outstanding advances on the item and rights of recoupment or setoff. If an item is handled by banks for purposes of presentment, payment, collection, or return, the relevant provisions of this chapter apply even though action of the parties clearly establishes that a particular bank has purchased the item and is the owner of it.
(b)
After an item has been indorsed with the words "pay any bank" or the like, only a bank may acquire the rights of a holder until the item has been:
(1)
Returned to the customer initiating collection; or
(2)
Specially indorsed by a bank to a person who is not a bank.
Codes, 1942, § 41A:4-201; Laws, 1966, ch. 316, § 4-201; Laws, 1992, ch. 420, § 83, eff. 1/1/1993.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 4 - UNIFORM COMMERCIAL CODE-BANK DEPOSITS AND COLLECTIONS (§§ 75-4-101 — 75-4-504) › Part 2 - COLLECTION OF ITEMS: DEPOSITARY AND COLLECTING BANKS (§§ 75-4-201 — 75-4-216) › Section 75-4-202 - Responsibility for collection or return; when action timely

(a)
A collecting bank must exercise ordinary care in:
(1)
Presenting an item or sending it for presentment;
(2)
Sending notice of dishonor or nonpayment or returning an item other than a documentary draft to the bank's transferor after learning that the item has not been paid or accepted, as the case may be;
(3)
Settling for an item when the bank receives final settlement; and
(4)
Notifying its transferor of any loss or delay in transit within a reasonable time after discovery thereof.
(b)
A collecting bank exercises ordinary care under subsection (a) by taking proper action before its midnight deadline following receipt of an item, notice, or settlement. Taking proper action within a reasonably longer time may constitute the exercise of ordinary care, but the bank has the burden of establishing timeliness.
(c)
Subject to subsection (a)(1), a bank is not liable for the insolvency, neglect, misconduct, mistake, or default of another bank or person or for loss or destruction of an item in the possession of others or in transit.
Codes, 1942, § 41A:4-202; Laws, 1966, ch. 316, § 4-202; Laws, 1992, ch. 420, § 84, eff. 1/1/1993.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 4 - UNIFORM COMMERCIAL CODE-BANK DEPOSITS AND COLLECTIONS (§§ 75-4-101 — 75-4-504) › Part 2 - COLLECTION OF ITEMS: DEPOSITARY AND COLLECTING BANKS (§§ 75-4-201 — 75-4-216) › Section 75-4-203 - Effect of instructions

Subject to Chapter 3 concerning conversion of instruments (Section
75-3-420
) and restrictive indorsements (Section
75-3-206
), only a collecting bank's transferor can give instructions that affect the bank or constitute notice to it, and a collecting bank is not liable to prior parties for any action taken pursuant to the instructions or in accordance with any agreement with its transferor.
Codes, 1942, § 41A:4-203; Laws, 1966, ch. 316, § 4-203; Laws, 1992, ch. 420, § 85, eff. 1/1/1993.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 4 - UNIFORM COMMERCIAL CODE-BANK DEPOSITS AND COLLECTIONS (§§ 75-4-101 — 75-4-504) › Part 2 - COLLECTION OF ITEMS: DEPOSITARY AND COLLECTING BANKS (§§ 75-4-201 — 75-4-216) › Section 75-4-204 - Methods of sending and presenting; sending directly to payor bank

(a)
A collecting bank shall send items by a reasonably prompt method, taking into consideration relevant instructions, the nature of the item, the number of those items on hand, the cost of collection involved, and the method generally used by it or others to present those items.
(b)
A collecting bank may send:
(1)
An item directly to the payor bank;
(2)
An item to a nonbank payor if authorized by its transferor; and
(3)
An item other than documentary drafts to a nonbank payor, if authorized by Federal Reserve regulation or operating circular, clearinghouse rule, or the like.
(c)
Presentment may be made by a presenting bank at a place where the payor bank or other payor has requested that presentment be made.
Codes, 1942, § 41A:4-204; Laws, 1966, ch. 316, § 4-204; Laws, 1992, ch. 420, § 86, eff. 1/1/1993.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 4 - UNIFORM COMMERCIAL CODE-BANK DEPOSITS AND COLLECTIONS (§§ 75-4-101 — 75-4-504) › Part 2 - COLLECTION OF ITEMS: DEPOSITARY AND COLLECTING BANKS (§§ 75-4-201 — 75-4-216) › Section 75-4-205 - Depositary bank holder of unindorsed item

If a customer delivers an item to a depositary bank for collection:
(1)
The depositary bank becomes a holder of the item at the time it receives the item for collection if the customer at the time of delivery was a holder of the item, whether or not the customer indorses the item, and, if the bank satisfies the other requirements of Section
75-3-302
, it is a holder in due course; and
(2)
The depositary bank warrants to collecting banks, the payor bank or other payor, and the drawer that the amount of the item was paid to the customer or deposited to the customer's account.
Codes, 1942, § 41A:4-205; Laws, 1966, ch. 316, § 4-205; Laws, 1992, ch. 420, § 87, eff. 1/1/1993.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 4 - UNIFORM COMMERCIAL CODE-BANK DEPOSITS AND COLLECTIONS (§§ 75-4-101 — 75-4-504) › Part 2 - COLLECTION OF ITEMS: DEPOSITARY AND COLLECTING BANKS (§§ 75-4-201 — 75-4-216) › Section 75-4-206 - Transfer between banks

Any agreed method that identifies the transferor bank is sufficient for the item's further transfer to another bank.
Codes, 1942, § 41A:4-206; Laws, 1966, ch. 316, § 4-206; Laws, 1992, ch. 420, § 88, eff. 1/1/1993.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 4 - UNIFORM COMMERCIAL CODE-BANK DEPOSITS AND COLLECTIONS (§§ 75-4-101 — 75-4-504) › Part 2 - COLLECTION OF ITEMS: DEPOSITARY AND COLLECTING BANKS (§§ 75-4-201 — 75-4-216) › Section 75-4-207 - Transfer warranties

(a)
A customer or collecting bank that transfers an item and receives a settlement or other consideration warrants to the transferee and to any subsequent collecting bank that:
(1)
The warrantor is a person entitled to enforce the item;
(2)
All signatures on the item are authentic and authorized;
(3)
The item has not been altered;
(4)
The item is not subject to a defense or claim in recoupment (Section
75-3-305(a)
) of any party that 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 check, that the person on whose account the remotely created check is drawn authorized the issuance of the check in the amount stated on the check and to the payee stated on the check.
(b)
If an item is dishonored, a customer or collecting bank transferring the item and receiving settlement or other consideration is obliged to pay the amount due on the item (i) according to the terms of the item at the time it was transferred, or (ii) if the transfer was of an incomplete item, according to its terms when completed as stated in Sections
75-3-115
and
75-3-407
. The obligation of a transferor is owed to the transferee and to any subsequent collecting bank that takes the item in good faith. A transferor cannot disclaim its obligation under this subsection by an indorsement stating that it is made "without recourse" or otherwise disclaiming liability.
(c)
A person to whom the warranties under subsection (a) are made and who took the item 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 item plus expenses and loss of interest incurred as a result of the breach.
(d)
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 warrantor is discharged to the extent of any loss caused by the delay in giving notice of the claim.
(e)
A cause of action for breach of warranty under this section accrues when the claimant has reason to know of the breach.
4-207; Laws, 1966, ch. 316, § 4-207; Laws, 1992, ch. 420, § 89; Laws, 2010, ch. 506, § 29, eff. 7/1/2010.
Mississippi Code 1972 (2023) › Title 75 - REGULATION OF TRADE, COMMERCE AND INVESTMENTS (§§ 75-1-101 — 75-NEW-NEW-007) › Chapter 4 - UNIFORM COMMERCIAL CODE-BANK DEPOSITS AND COLLECTIONS (§§ 75-4-101 — 75-4-504) › Part 2 - COLLECTION OF ITEMS: DEPOSITARY AND COLLECTING BANKS (§§ 75-4-201 — 75-4-216) › Section 75-4-209 - Encoding and retention warranties

(a)
A person who encodes information on or with respect to an item after issue warrants to any subsequent collecting bank and to the payor bank or other payor that the information is correctly encoded. If the customer of a depositary bank encodes, that bank also makes the warranty.
(b)
A person who undertakes to retain an item pursuant to an agreement for electronic presentment warrants to any subsequent collecting bank and to the payor bank or other payor that retention and presentment of the item comply with the agreement. If a customer of a depositary bank undertakes to retain an item, that bank also makes this warranty.
(c)
A person to whom warranties are made under this section and who took the item 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, plus expenses and loss of interest incurred as a result of the breach.
Laws, 1992, ch. 420, § 91, eff. 1/1/1993.