- Alaska Statutes.
- Title 45. Trade and Commerce
- Chapter 3. Negotiable Instruments
- Section 417. Presentment Warranties.
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. Transfer Warranties.
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. Payment or Acceptance By Mistake.
AS 45.03.417. Presentment Warranties.
- (a) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft,
the person obtaining payment or acceptance, at the time of presentment, and a previous transferor of the draft, at the
time of transfer, warrant to the drawee making payment or accepting 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 does not know that the signature of the drawer of the draft is unauthorized.
- (b) A drawee making payment may recover from any 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, breach of warranty is a defense to the obligation of
the acceptor. If the acceptor makes payment with respect to the draft, the acceptor is entitled to recover from any
warrantor for breach of warranty the amounts stated in this subsection.
- (c) If a drawee asserts a claim for breach of warranty under (a) of this section based on an unauthorized endorsement of
the draft or an alteration of the draft, the warrantor may defend by proving that the endorsement is effective under AS
or 45.03.405, or that the drawer is precluded under
or AS 45.04.406
from asserting against the drawee the unauthorized endorsement or alteration.
- (d) If a dishonored draft is presented for payment to the drawer or an endorser, or if any other instrument is presented
for payment to a party obliged to pay the instrument, and payment is received, the following rules apply:
- (1) the person obtaining payment and a prior transferor of the instrument warrant to the person making payment in good
faith that the warrantor is, or was at the time the warrantor transferred the instrument, a person entitled to enforce
the instrument or authorized to obtain payment on behalf of a person entitled to enforce the instrument;
- (2) 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 (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 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) or (d) of this section is discharged
to the extent of any loss caused by the delay in giving notice of the claim.
- (f) 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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