Payment Systems: Indorsement Liability and Transfer and Presentment Warranties Podcast
The topic of this podcast is when a party that has suffered a loss can shift the loss to another party who indorsed the instrument or who either transferred or presented an instrument for payment. This is important because oftentimes an examination question will simply ask who is liable, which often involves analysis of whether a liable party can shift liability to others. This podcast primarily covers the rules of §§ 3-415 - 3-417. At the conclusion of this podcast you should be able to (1) describe who has indorser liability on an instrument, to whom such liability is owed, and when it can be asserted; and (2) describe which parties may claim breach of transfer and presentment warranties, to whom the warranties are made, and when a breach of the warranty can be asserted.