- Alaska Statutes.
- Title 45. Trade and Commerce
- Chapter 3. Negotiable Instruments
- Section 416. Transfer Warranties.
previous: Section 415
. Obligation of Endorser.
next: Section 417
. Presentment Warranties.
AS 45.03.416. Transfer Warranties.
- (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 that can be asserted against the
- (5) the warrantor does not know of any insolvency proceeding commenced with respect to the maker or acceptor or, in the
case of an unaccepted draft, the drawer.
- (b) A person to whom the warranties under (a) of this section 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
- (c) The warranties stated in (a) 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 30 days after the claimant has reason to know of the breach and the
identity of the warrantor, the liability of the warrantor under (b) of this section 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
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