Florida Statute 674.207 - Full Text and Legal Analysis

The 2025 Florida Statutes

Title XXXIX
COMMERCIAL RELATIONS

Chapter 674
UNIFORM COMMERCIAL CODE: BANK DEPOSITS AND COLLECTIONS

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F.S. 674.207

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;

(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.

History.—s. 1, ch. 65-254; s. 25, ch. 92-82.

Note.—s. 4-207, U.C.C.; supersedes ss. 674.67, 674.71.

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Amendments to 674.207

Annotations, Discussions, Cases:

Cases Citing Statute 674.207

Total Results: 9

Lawrence v. CENT. PLAZA BK. AND TRUST CO.

469 So. 2d 201, 10 Fla. L. Weekly 1302, 41 U.C.C. Rep. Serv. (West) 182, 1985 Fla. App. LEXIS 14220

District Court of Appeal of Florida | Filed: May 22, 1985 | Docket: 620005

Cited 9 times | Published

concur. NOTES [1] This section is identical to section 674.207, Florida Statutes (1983). [2] A cashier's

Peoples Bank in North Fort Myers v. Bob Lincoln, Inc.

283 So. 2d 400, 13 U.C.C. Rep. Serv. (West) 672, 1973 Fla. App. LEXIS 6650

District Court of Appeal of Florida | Filed: Sep 14, 1973 | Docket: 1743577

Cited 6 times | Published

defense such as breach of a presentment warranty (§ 674.207(1)), settlement effected or the like, if an item

Bloempoort v. Regency Bank of Florida

567 So. 2d 923, 12 U.C.C. Rep. Serv. 2d (West) 593, 1990 Fla. App. LEXIS 6729, 1990 WL 127989

District Court of Appeal of Florida | Filed: Sep 5, 1990 | Docket: 1380891

Cited 4 times | Published

to alteration or unauthorized signature), and § 674.207, Fla. Stat. (1989) (warranties on transfer or

Parker v. Dudley

527 So. 2d 240, 1988 WL 51630

District Court of Appeal of Florida | Filed: May 26, 1988 | Docket: 529540

Cited 2 times | Published

302(1), Fla. Stat.). [7] U.C.C. § 4-207(1)(a) (§ 674.207(1)(a), Fla. Stat.). [8] For tax purposes money

Lucas v. BankAtlantic

944 So. 2d 1031, 2006 WL 1686486

District Court of Appeal of Florida | Filed: Jun 21, 2006 | Docket: 291078

Cited 1 times | Published

"transfer[red]" a check within the meaning of section 674.207, Florida Statutes (2004),[1] so that he is

Impact Computers & Electronics, Inc. v. Bank of America, N.A.

852 So. 2d 946, 2003 Fla. App. LEXIS 12791, 2003 WL 22014728

District Court of Appeal of Florida | Filed: Aug 27, 2003 | Docket: 64824452

Cited 1 times | Published

Impact; Count III for alleged violation of section 674.207 for untimely notification of an altered item;

Lucas v. Bankatlantic

924 So. 2d 959, 59 U.C.C. Rep. Serv. 2d (West) 346, 2006 Fla. App. LEXIS 4967, 2006 WL 862903

District Court of Appeal of Florida | Filed: Apr 5, 2006 | Docket: 64843282

Published

meaning of section 674.207(1), Florida Statutes (2004). We do not reach the issue under section 674.207, because

Sun Bank, NA v. Merrill Lynch

637 So. 2d 279, 1994 WL 140738

District Court of Appeal of Florida | Filed: Apr 22, 1994 | Docket: 423058

Published

warranty claim against Merrill Lynch under section 674.207, Florida *283 Statutes (1991).[6] As the court

Pan American World Airways, Inc. v. Continental National Bank of Miami

444 So. 2d 1073, 37 U.C.C. Rep. Serv. (West) 1240, 1984 Fla. App. LEXIS 11532

District Court of Appeal of Florida | Filed: Jan 24, 1984 | Docket: 64602570

Published

affirm. The warranty of good title found in section 674.207(1) is limited to a finding *1074that the item