Louisiana HB 232 (Act 208) Attorney Fees for UCC Presentment Warranty Claims

Strengthens laws addressing check fraud by updating definitions to include altered checks and increasing penalties for repeat offenders, including mandatory prison time.

Status: Passed State: Louisiana Tags: Check Fraud

About the Legislation:

HB 232 (Act 208) by Rep. Nicky Muscarello is LBA-sponsored legislation that amends Louisiana’s Uniform Commercial Code provisions relative to presentment warranties and transfer warranties to clarify that when a bank is successful in its lawsuit to recover for an altered check based on a breach of warranty claim, the prevailing bank is entitled to recover its reasonable attorney fees as part of its expenses. This Act requires prior notice and opportunity to pay the claim before attorney fees can be recovered. Thus, the bank would need to give written notice of its warranty claim to the presenting/transferring bank and give them 30 days to respond before attorney fees could be recoverable.

Read the Legislation

State Association Contact

David Boneno, General Counsel

Joe Gendron, Director of Government Relations

Any updates or new legislation should be sent to fraud@aba.com. Any updates or new legislation should be sent to fraud@aba.com.

Louisiana HB 232 (Act 208) Attorney Fees for UCC Presentment Warranty Claims

About the Legislation:

State Association Contact

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