§5004 Substitute check warranties

Summary

When a bank transfers, presents, or returns a substitute check and is paid for it, the bank guarantees to the person or bank that gets it (for example, later collecting or returning banks, the depositary bank, the drawee — the bank that must pay, the drawer — the person who wrote the check, the payee, the depositor, and any endorser) — even if they receive a paper or electronic copy instead — two things. First, the substitute check follows the legal-equivalence rules in section 5003(b). Second, no depositary bank, drawee, drawer, or endorser will be asked to pay again on a check they already paid.