§12A-4-208.

§12A-4-208.
   
                           PRESENTMENT WARRANTIES
                                      
   (a) If an unaccepted draft is presented to the drawee for payment or
   acceptance and the drawee pays or accepts the draft, (i) the person
   obtaining payment or acceptance, at the time of presentment, and (ii)
   a previous transferor of the draft, at the time of transfer, warrant
   to the drawee that pays or accepts the draft in good faith that:
   
   (1) The warrantor is, or was, at the time the warrantor transferred
   the draft, a person entitled to enforce the draft or authorized to
   obtain payment or acceptance of the draft on behalf of a person
   entitled to enforce the draft;
   
   (2) The draft has not been altered; and
   
   (3) The warrantor has no knowledge that the signature of the purported
   drawer of the draft is unauthorized.
   
   (b) A drawee making payment may recover from a warrantor damages for
   breach of warranty equal to the amount paid by the drawee less the
   amount the drawee received or is entitled to receive from the drawer
   because of the payment. In addition, the drawee is entitled to
   compensation for expenses and loss of interest resulting from the
   breach. The right of the drawee to recover damages under this
   subsection is not affected by any failure of the drawee to exercise
   ordinary care in making payment. If the drawee accepts the draft (i)
   breach of warranty is a defense to the obligation of the acceptor, and
   (ii) if the acceptor makes payment with respect to the draft, the
   acceptor is entitled to recover from a warrantor for breach of
   warranty the amounts stated in this subsection.
   
   (c) If a drawee asserts a claim for breach of warranty under
   subsection (a) of this section based on an unauthorized indorsement of
   the draft or an alteration of the draft, the warrantor may defend by
   proving that the indorsement is effective under Section 3-404 or 3-405
   of this title or the drawer is precluded under Section 3-406 or 4-406
   of this title from asserting against the drawee the unauthorized
   indorsement or alteration.
   
   (d) If (i) a dishonored draft is presented for payment to the drawer
   or an indorser or (ii) any other item is presented for payment to a
   party obliged to pay the item, and the item is paid, the person
   obtaining payment and a prior transferor of the item warrant to the
   person making payment in good faith that the warrantor is, or was, at
   the time the warrantor transferred the item, a person entitled to
   enforce the item or authorized to obtain payment on behalf of a person
   entitled to enforce the item. The person making payment may recover
   from any warrantor for breach of warranty an amount equal to the
   amount paid plus expenses and loss of interest resulting from the
   breach.
   
   (e) The warranties stated in subsections (a) and (d) of this section
   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.
   
   (f) A claim for relief for breach of warranty under this section
   accrues when the claimant has reason to know of the breach.