§5004 Substitute Check Warranties

Summary

When a bank transfers, presents, or returns a substitute check and is paid for it, the bank must promise certain people and banks — the transferee, any later collecting or returning bank, the depositary bank, the drawee (the bank that pays the check), the drawer (the person who wrote the check), the payee, the depositor, and any endorser — that two things are true. First, the substitute check meets all the rules to be legally the same as the original check under section 5003(b). Second, no depositary bank, drawee, drawer, or endorser will be asked to pay on the same check more than once because they get the substitute check, the original, or any copy or electronic version.