Vermont § 416 - § 3—416.
Full text of Vermont Vermont Statutes Online § 416 — § 3—416., with citation guidance and answers to common questions.
§ 416. § 3—416.
- Transfer warranties (a) A person who transfers an instrument for consideration warrants to the transferee
and, if the transfer is by indorsement, to any subsequent transferee that: (1) the warrantor is a person entitled to enforce the instrument; (2) all signatures on the instrument are authentic and authorized; (3) the instrument has not been altered; (4) the instrument is not subject to a defense or claim in recoupment of any party which
can be asserted against the warrantor; (5) 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; and (6) if the instrument is a demand draft, creation of the instrument according to the terms
on its face was authorized by the person identified as drawer. (b) A person to whom the warranties under subsection (a) of this section 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. (c) The warranties stated in subsection (a) of this section 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 (b) of
this section is discharged to the extent of any loss caused by the delay in giving
notice of the claim. (d) A cause of action for breach of warranty under this section accrues when the claimant
has reason to know of the breach. (e) If the warranty in paragraph (a)(6) of this section is not given by a transferor under
applicable conflict of law rules, the warranty is not given to that transferor when
that transferor is a transferee. (Added 1993, No. 158 (Adj. Sess.), § 12, eff. Jan. 1, 1995; amended 2003, No. 87 (Adj. Sess.), § 3.)
Frequently Asked Questions About Vermont § 416
What does Vermont Statutes Online § 416 cover?
Section 416 ("§ 3—416.") is part of the Vermont Statutes Online, the codified statutory law of Vermont. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Vermont § 416?
A common citation format is "Vermont Statutes Online § 416" (Vermont). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Vermont law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Vermont official source linked on this page or consult a licensed Vermont attorney.
How does Vermont § 416 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Vermont can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Vermont.