§490:4-205 Depositary bank holder of unindorsed item. If a customer delivers an item to a depositary bank for collection:
(1) The depositary bank becomes a holder of the item at the time it receives the item for collection if the customer at the time of delivery was a holder of the item, whether or not the customer indorses the item, and, if the bank satisfies the other requirements of section 490:3-302, it is a holder in due course; and
(2) The depositary bank warrants to collecting banks, the payor bank or other payor, and the drawer that the amount of the item was paid to the customer or deposited to the customer's account. [L 1965, c 208, §4-205; HRS §490:4-205; am L 1991, c 118, pt of §4]
Section: Previous 490-4-109 490-4-110 490-4-111 490-4-201 490-4-202 490-4-203 490-4-204 490-4-205 490-4-206 490-4-207 490-4-208 490-4-209 490-4-210 490-4-211 490-4-212 NextLast modified: October 27, 2016