Texas Business & Commerce Code - Section 4.205. Depository Bank Holder Of Unindorsed Item
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Texas Lawyer > Business & Commerce Code > Texas Business & Commerce Code - Section 4.205. Depository Bank Holder Of Unindorsed Item
§ 4.205. DEPOSITORY BANK HOLDER OF UNINDORSED ITEM. If a
customer delivers an item to a depositary bank for collection, the
depositary bank:
(1) 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 3.302, the bank is a holder in due course;
and
(2) 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.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1, eff. Sept. 1, 1967.
Amended by Acts 1995, 74th Leg., ch. 921, § 4, eff. Jan. 1, 1996.
Section: 4.110 4.111 4.112 4.201 4.202 4.203 4.204 4.205 4.206 4.207 4.208 4.209 4.210 4.211 4.212
Last modified: August 10, 2007
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