12A:4-205. Depositary bank holder of unindorsed item
If a customer delivers an item to a depositary bank for collection:
a. 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 12A:3-302, it is a holder in due course; and
b. 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.1995,c.28,s.2.
Section: Previous 12a-4-109 12a-4-110 12a-4-111 12a-4-201 12a-4-202 12a-4-203 12a-4-204 12a-4-205 12a-4-206 12a-4-207 12a-4-208 12a-4-209 12a-4-210 12a-4-211 12a-4-212 Next
Last modified: October 11, 2016