Like secondary signature liability, warranty liability is subject to the conditions of proper presentment, dishonor, and notice of dishonor.

Question

Quizplus · Accepted Answer

Warranty liability does not depend on the conditions of proper presentment, dishonor, and notice of dishonor, unlike secondary signature liability which does. Warranty liability arises from the breach of certain warranties made during the negotiation or transfer of a negotiable instrument, regardless of these conditions.

Like Secondary Signature Liability, Warranty Liability Is Subject to the Conditions