The 2023 Florida Statutes (including Special Session C)

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.

F.S. 674.207 on Google Scholar

F.S. 674.207 on Casetext

Amendments to 674.207

Arrestable Offenses / Crimes under Fla. Stat. 674.207

Level: Degree
Misdemeanor/Felony: First/Second/Third

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 674.207.

Annotations, Discussions, Cases:

Cases from cite.case.law:

J. LUCAS, v. BANKATLANTIC,, 944 So. 2d 1031 (Fla. Dist. Ct. App. 2006)

. . . an issue of fact remains as to whether Lucas “transfer[red]” a check within the meaning of section 674.207 . . . Section 674.207(1) refers to the “transfer ]” of “an item.” . . . Section 674.207(1) has also been rewritten. . . . Chapter 92-82, section 25, Laws of Florida, rewrote section 674.207, effective January 1, 1993. . . . See § 674.207, Fla. Stat. Ann. (2005), Historical and Statutory Notes. . . .

J. LUCAS, v. BANKATLANTIC,, 924 So. 2d 959 (Fla. Dist. Ct. App. 2006)

. . . of fact as to whether he was a “customer” who “transfer[red] an item” within the meaning of section 674.207 . . . We do not reach the issue under section 674.207, because the section 673.4161 transfer warranty is applicable . . . The amended complaint stated that Count I was “brought pursuant to § 674.207,” Florida Statutes (2004 . . . First, section 674.207 applies to all "items,” while section 673.4161 applies to "instruments.” . . . Second, section 674.207(2) does not appear in section 673.4161; subsection (2) "places liability on a . . .

IMPACT COMPUTERS AND ELECTRONICS, INC. a v. BANK OF AMERICA, N. A. a, 852 So. 2d 946 (Fla. Dist. Ct. App. 2003)

. . . breach of the bank’s “banking services” contract with Impact; Count III for alleged violation of section 674.207 . . .

SUN BANK, N. A. v. MERRILL LYNCH, PIERCE, FENNER AND SMITH, INC., 637 So. 2d 279 (Fla. Dist. Ct. App. 1994)

. . . , Sun Bank may still assert a breach of transfer warranty claim against Merrill Lynch under section 674.207 . . . It argues that, if the existence of a forged or unauthorized signature is immaterial, then section 674.207 . . . Section 674.207, Florida Statutes (1991) provides that when a customer or collecting bank receives payment . . .

BLOEMPOORT, v. REGENCY BANK OF FLORIDA,, 567 So. 2d 923 (Fla. Dist. Ct. App. 1990)

. . . 673.406, Fla.Stat. (1989) (negligence contributing to alteration or unauthorized signature), and § 674.207 . . .

R. PARKER, v. E. DUDLEY,, 527 So. 2d 240 (Fla. Dist. Ct. App. 1988)

. . . . § 4-207(l)(a) (§ 674.207(l)(a), Fla. Stat.). . . . .

BANK OF MIAMI, a v. BANCO INDUSTRIAL Y GANADERO DEL BENI, S. A. a, 515 So. 2d 1038 (Fla. Dist. Ct. App. 1987)

. . . 1979), which provides: “In the absence of a valid defense such as breach of presentment warranty (s. 674.207 . . .

LAWRENCE, v. CENTRAL PLAZA BANK AND TRUST COMPANY,, 469 So. 2d 201 (Fla. Dist. Ct. App. 1985)

. . . This section is identical to section 674.207, Florida Statutes (1983). . . . .

PAN AMERICAN WORLD AIRWAYS, INC. v. CONTINENTAL NATIONAL BANK OF MIAMI,, 444 So. 2d 1073 (Fla. Dist. Ct. App. 1984)

. . . As to Continental, Pan Am asserted a breach of warranty under sections 674.207(1) and (2), Florida Statutes . . . The warranty of good title found in section 674.207(1) is limited to a finding that the item was presented . . . for payment with no forged endorsements, § 674.207, Fla.Stat. (1981); Sun ’N Sand, Inc. v. . . .

PAN AMERICAN AIRWAYS, INC. v. CONTINENTAL NATIONAL BANK OF MIAMI, 2 Fla. Supp. 2d 148 (Fla. Cir. Ct. 1983)

. . . The four counts against CONTINENTAL include Count I for breach of warranty under Section 674.207(1) of . . . the Florida Statutes; Count II for breach of warranty under Section 674.207(2), Fla. . . . fraudulent representations as to warranties; and Count IX asserting breach of warranty under Section 674.207 . . . PAN AM has also asserted a breach of Section 674.207(2) of the Florida Statutes. . . . An examination of the language of (1) and (2) of Section 674.207 reflects that while the latter warranty . . .

PERKINS STATE BANK, a v. CONNOLLY, 632 F.2d 1306 (5th Cir. 1980)

. . . . § 674.207 .... Unpublished Memorandum Opinion, Aug. 21, 1978, at 2. . . .

JACKSON VITRIFIED CHINA COMPANY, v. PEOPLE S AMERICAN NATIONAL BANK OF NORTH MIAMI, 388 So. 2d 1059 (Fla. Dist. Ct. App. 1980)

. . . sued the collecting bank, appel-lee herein, for breach of warranties of title under §§ 673.417(2), 674.207 . . .

PEOPLES BANK IN NORTH FORT MYERS, v. BOB LINCOLN, INC., 283 So. 2d 400 (Fla. Dist. Ct. App. 1973)

. . . . § 674.302 provides: In the absence of a valid defense such as breach of a presentment warranty (§ 674.207 . . .