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#2584 - 06/26/01 02:04 PM encoding warranty
yomama Offline
Junior Member
Joined: Mar 2001
Posts: 25
If we are the depository bank and made an encode error on a check, (the amount deposited was greater than the amount of the check), how long does the customer/bank have to return the item? Our periodic statements allow 60 days to notify the bank for EFT and other errors.

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#2585 - 06/26/01 07:46 PM Re: encoding warranty
Mary Beth Guard Offline
Platinum Poster
Mary Beth Guard
Joined: Oct 2000
Posts: 797
Oklahoma City, OK
The encoding warranty is found in Section 4-209 of the Uniform Commercial Code.

When you encode an item, you warrant that the encoded information is correct. Unlike alterations and forgeries, Section 4-406 does not put the drawer under a duty to promptly report encoding errors. Therefore, the drawer (or payee, if the mistake went against the payee's favor) can bring file suit, if necessary to enforce its breach of warranty claim up to three years after the cause of action accrues. (See Section 4-111


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