Indemnifying bank

Definition
An indemnifying bank is

"[a] financial institution that transfers, presents, or returns a substitute check or a paper or electronic representation of a substitute check for which it receives consideration. The financial institution shall indemnify the recipient and any subsequent recipient (including a collecting or returning financial institution, the depository financial institution, the drawer, the drawee, the payee, the depositor, and any endorser) for any loss incurred by any recipient of a substitute check if that loss occurred due to the receipt of a substitute check instead of the original."