Illinois General Assembly - Illinois Compiled Statutes

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810 ILCS 5/4-209

(810 ILCS 5/4-209) (from Ch. 26, par. 4-209)

Sec. 4-209.

Encoding and retention warranties.

(a) A person that 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.

(Source: P.A. 87-582; 87-1135.)