Florida Statutes
Fla. Stat. § 674.207 (2025)
Transfer warranties.
✓ 2025 Florida Statutes — current through the 2025 Regular Session
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674.207 Transfer warranties.—
(1) 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:
(a) The warrantor is a person entitled to enforce the item;
(b) All signatures on the item are authentic and authorized;
(c) The item has not been altered;
(d) The item is not subject to a defense or claim in recoupment (s. 673.3051(1)) of any party that can be asserted against the warrantor; and
(e) 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.
(2) 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 according to the terms of the item at the time it was transferred or, if the transfer was of an incomplete item, according to its terms when completed as stated in ss. 673.1151 and 673.4071. 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.
(3) A person to whom the warranties under subsection (1) 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.
(4) The warranties stated in subsection (1) 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 warrantor is discharged to the extent of any loss caused by the delay in giving notice of the claim.
(5) A cause of action for breach of warranty under this section accrues when the claimant has reason to know of the breach.
Note.—s. 4-207, U.C.C.; supersedes ss. 674.67, 674.71.
Notes of Decisions
Cited in 12
cases (1 in the last 5 years), 1973–2021 · leading case: Lucas v. BankAtlantic, 944 So. 2d 1031 (Fla. 4th DCA 2006).
Lucas v. BankAtlantic, 944 So. 2d 1031 (Fla. 4th DCA 2006). “See § 674.207, Fla. Stat. Ann. (2005), Historical and Statutory Notes.”
Perkins State Bank, a Florida Banking Corp. v. John Connolly, the Hanover Nat'l Bank of Wilkes-Barre, 632 F.2d 1306 (5th Cir. 1980). “Its remedies lay against Perkins under the warranties found in Fla. Stat. § 674.207 .... Unpublished Memorandum Opinion, Aug.”
Lawrence v. Cent. Plaza Bk. & Trust Co., 469 So. 2d 201 (Fla. 2d DCA 1985). “NOTES [1] This section is identical to section 674.207, Florida Statutes (1983).”
Parker v. Dudley, 527 So. 2d 240 (Fla. 5th DCA 1988). “§ 4-207(1)(a) (§ 674.207(1)(a), Fla. Stat.). [8] For tax purposes money is considered intangible personal property the value of which is based on that which the property represents rather than its own intrinsic value.”
Bloempoort v. Regency Bank of Florida, 567 So. 2d 923 (Fla. 2d DCA 1990). “(1989) (negligence contributing to alteration or unauthorized signature), and § 674.207, Fla. Stat. (1989) (warranties on transfer or presentment of items).”
Impact Computers & Elec., Inc. v. Bank of Am., N.A., 852 So. 2d 946 (Fla. 3d DCA 2003). “2141 for improperly debiting Impact’s account after settlement of Westgate’s check became final; Count II for alleged breach of the bank’s “banking services” contract with Impact; Count III for alleged violation of section 674.207 for untimely notification of an altered item;…”
Peoples Bank in North Fort Myers v. Bob Lincoln, Inc., 283 So. 2d 400 (Fla. 2d DCA 1973). “302 provides: In the absence of a valid defense such as breach of a presentment warranty (§ 674.207(1)), settlement effected or the like, if an item is presented on and received by a payor bank the bank is accountable for the amount of: (1) A demand item other than a documentary…”
Lucas v. Bankatlantic, 924 So. 2d 959 (Fla. 4th DCA 2006). “The amended complaint stated that Count I was “brought pursuant to § 674.207,” Florida Statutes (2004). Section 673.”
Pan Am. Airways, Inc. v. Cont'l Nat'l Bank, 2 Fla. Supp. 2d 148 (Fla. Cir. Ct. 1983). “An examination of the language of (1) and (2) of Section 674.207 reflects that while the latter warranty does run in favor of a “payor bank or other payor” the latter warranty exists only in favor of a “transferee.”
Sun Bank, NA v. Merrill Lynch, 637 So. 2d 279 (Fla. 5th DCA 1994). “It argues that, if the existence of a forged or unauthorized signature is immaterial, then section 674.207, Florida Statutes (1991) regarding transfer warranties is meaningless.”
Pan Am. World Airways, Inc. v. Cont'l Nat'l Bank of Miami, 444 So. 2d 1073 (Fla. 3d DCA 1984). “As to Continental, Pan Am asserted a breach of warranty under sections 674.207(1) and (2), Florida Statutes (1981), and fraudulent misrepresentation as to the warranties.”
Regions Bank v. Marvin I. Kaplan (11th Cir. 2021). “See Fla. Stat. § 674.207 (2)–(3) (requiring that the check be accepted “in good faith”); id.”
— 674.207(1) — 5 cases
Lucas v. BankAtlantic, 944 So. 2d 1031 (Fla. 4th DCA 2006). “See § 674.207, Fla. Stat. Ann. (2005), Historical and Statutory Notes.”
Peoples Bank in North Fort Myers v. Bob Lincoln, Inc., 283 So. 2d 400 (Fla. 2d DCA 1973). “302 provides: In the absence of a valid defense such as breach of a presentment warranty (§ 674.207(1)), settlement effected or the like, if an item is presented on and received by a payor bank the bank is accountable for the amount of: (1) A demand item other than a documentary…”
Lucas v. Bankatlantic, 924 So. 2d 959 (Fla. 4th DCA 2006). “The amended complaint stated that Count I was “brought pursuant to § 674.207,” Florida Statutes (2004). Section 673.”
Pan Am. Airways, Inc. v. Cont'l Nat'l Bank, 2 Fla. Supp. 2d 148 (Fla. Cir. Ct. 1983). “An examination of the language of (1) and (2) of Section 674.207 reflects that while the latter warranty does run in favor of a “payor bank or other payor” the latter warranty exists only in favor of a “transferee.”
Pan Am. World Airways, Inc. v. Cont'l Nat'l Bank of Miami, 444 So. 2d 1073 (Fla. 3d DCA 1984). “As to Continental, Pan Am asserted a breach of warranty under sections 674.207(1) and (2), Florida Statutes (1981), and fraudulent misrepresentation as to the warranties.”
— 674.207(1)(a) — 1 case
Parker v. Dudley, 527 So. 2d 240 (Fla. 5th DCA 1988). “§ 4-207(1)(a) (§ 674.207(1)(a), Fla. Stat.). [8] For tax purposes money is considered intangible personal property the value of which is based on that which the property represents rather than its own intrinsic value.”
— 674.207(2) — 2 cases
Pan Am. Airways, Inc. v. Cont'l Nat'l Bank, 2 Fla. Supp. 2d 148 (Fla. Cir. Ct. 1983). “An examination of the language of (1) and (2) of Section 674.207 reflects that while the latter warranty does run in favor of a “payor bank or other payor” the latter warranty exists only in favor of a “transferee.”
Lucas v. Bankatlantic, 924 So. 2d 959 (Fla. 4th DCA 2006). “The amended complaint stated that Count I was “brought pursuant to § 674.207,” Florida Statutes (2004). Section 673.”
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