47-4205. 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 47-3302, 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.
Section: Previous 47-4109 47-4110 47-4111 47-4201 47-4202 47-4203 47-4204 47-4205 47-4206 47-4207 47-4208 47-4209 47-4210 47-4211 47-4212 NextLast modified: October 13, 2016