Florida Statute 673.4161 - Full Text and Legal Analysis

The 2025 Florida Statutes

Title XXXIX
COMMERCIAL RELATIONS

Chapter 673
UNIFORM COMMERCIAL CODE: NEGOTIABLE INSTRUMENTS

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673.4161 Transfer warranties.—

(1) A person who transfers an instrument for consideration warrants to the transferee and, if the transfer is by indorsement, to any subsequent transferee that:

(a) The warrantor is a person entitled to enforce the instrument;

(b) All signatures on the instrument are authentic and authorized;

(d) The instrument is not subject to a defense or claim in recoupment of any party which 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) A person to whom the warranties under subsection (1) are made and who took the instrument 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 instrument plus expenses and loss of interest incurred as a result of the breach.

(3) 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 liability of the warrantor under subsection (2) is discharged to the extent of any loss caused by the delay in giving notice of the claim.

(4) A cause of action for breach of warranty under this section accrues when the claimant has reason to know of the breach.

History.—s. 2, ch. 92-82.

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Amendments to 673.4161

Annotations, Discussions, Cases:

Cases Citing Statute 673.4161

Total Results: 3 | Sort by: Relevance | Newest First

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Sykes Corp. v. E. Metal Supply, Inc., 659 So. 2d 475 (Fla. Dist. Ct. App. 1995).

Cited 1 times | Published | District Court of Appeal of Florida | 27 U.C.C. Rep. Serv. 2d (West) 504, 1995 Fla. App. LEXIS 8870, 1995 WL 497263

...ctive endorsements. If Amelung did not possess the authority to endorse the questioned cheeks in blank, his endorsement would be unauthorized thereby exposing Barnett Bank to possible liability. We have *478 deliberately not considered the effect of section 673.4161(l)(b), Florida Statutes (1993), on Amelung’s endorsement on the checks alleged to have been converted because neither party has raised the same....

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HSBC Bank USA, N.A. v. Rolando Perez, Juan G. Guerra, Esperanza Medina, LaSalle, Bank, N.A., & U.S. Bank, N.A., 165 So. 3d 696 (Fla. 4th DCA 2015).

Published | Florida 4th District Court of Appeal | 86 U.C.C. Rep. Serv. 2d (West) 565, 2015 Fla. App. LEXIS 6716, 2015 WL 2078683

...facts. Like NetBank, HSBC in this case established its priority in the note— and, by extension, the mortgage—by virtue of being the first to perfect its interest through possession. The Code does not leave LaSalle Bank without a remedy. Under section 673.4161(1), Florida Statutes (2014), LaSalle has an action for breach of warranty against the transferor of the note, a remedy more theoretical than practical given the existence of the scheme to defraud. traditional practices in t...

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Lucas v. Bankatlantic, 924 So. 2d 959 (Fla. Dist. Ct. App. 2006).

Published | District Court of Appeal of Florida | 59 U.C.C. Rep. Serv. 2d (West) 346, 2006 Fla. App. LEXIS 4967, 2006 WL 862903

...Lucas contends that summary judgment was inappropriate because his affidavit raised disputed issues of fact as to whether he was a “customer” who “transfer[red] an item” within the meaning of section 674.207(1), Florida Statutes (2004). We do not reach the issue under section 674.207, because the section 673.4161 transfer warranty is applicable under the undisputed facts of this case....

...ly similar to that of the payee,” i.e., Lucas’s trust account. § 673.4041(3)(b), Fla. Stat. (2004). Section 673.4041 operates to make Lucas an indorser of the check. As an indorser, he was liable to BankAtlantic under both sections 673.4151 and 673.4161, Florida Statutes (2004). Section 673.4161(1) contemplates that a transfer may be “by in-dorsement.” Regardless of who indorsed or actually deposited the check into Lucas’s account, the Code treats the check as being indorsed by Lucas, so that BankAtlantic may look to him to recover its loss....

...We therefore remand to the circuit court for further proceedings directed at that issue. Affirmed in part; reversed and remanded in part. STONE and MAY, JJ., concur. . The amended complaint stated that Count I was “brought pursuant to § 674.207,” Florida Statutes (2004). Section 673.4161, Florida Statutes (2004), also concerns transfer warranties, and is "virtually identical” to section 674.207. White and Summers, Uniform Commercial Code § 18-7 n. 11 (4th ed. 1995). There are two notable differences between the statutes. 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 transferor as if the transferor had indorsed the item, whether or not the transferor actually indorsed the item.” White and Summers, at § 18-7 n....

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