12 USC 5005 - Indemnity

U.S Code last checked for updates: Nov 22, 2024

§ 5005.

Indemnity

(a)

Indemnity

(b)

Indemnity amount

(1)

Amount in event of breach of warranty

(2)

Amount in absence of breach of warranty

In the absence of a breach of a warranty provided under section 5004 of this title, the amount of the indemnity under subsection (a) shall be the sum of—

(A)

the amount of any loss, up to the amount of the substitute check; and

(B)

interest and expenses (including costs and reasonable attorney’s fees and other expenses of representation).

(c)

Comparative negligence

(1)

In general

(2)

Rule of construction

(d)

Effect of producing original check or copy

(1)

In general

If the indemnifying bank produces the original check or a copy of the original check (including an image or a substitute check) that accurately represents all of the information on the front and back of the original check (as of the time the original check was truncated) or is otherwise sufficient to determine whether or not a claim is valid, the indemnifying bank shall—

(A)

be liable under this section only for losses covered by the indemnity that are incurred up to the time that the original check or copy is provided to the indemnified party; and

(B)

have a right to the return of any funds it has paid under the indemnity in excess of those losses.

(2)

Coordination of indemnity with implied warranty

(e)

Subrogation of rights

(1)

In general

(2)

Recovery under warranty

(3)

Duty of indemnified party

(Pub. L. 108–100, § 6, Oct. 28, 2003, 117 Stat. 1181.)

cite as: 12 USC 5005