California Commercial Code CHAPTER 2 - Collection of Items: Depositary and Collecting Banks

• Section 4201.
  (a) Unless a contrary intent clearly appears and before the time that a settlement given by a collecting bank for an item is or becomes final,...
• Section 4202.
  (a) A collecting bank shall exercise ordinary care in all of the following:(1) Presenting an item or sending it for presentment.(2) Sending notice of dishonor or nonpayment or...
• Section 4203.
  Subject to Division 3 (commencing with Section 3101) concerning conversion of instruments (Section 3420) and restrictive indorsements (Section 3206), only a collecting bank’s transferor can...
• Section 4204.
  (a) A collecting bank shall send items by reasonably prompt method, taking into consideration relevant instructions, the nature of the item, the number of those items...
• Section 4205.
  If a customer delivers an item to a depositary bank for collection both of the following apply:(a) The depositary bank becomes a holder of the item...
• Section 4206.
  Any agreed method that identifies the transferor bank is sufficient for the item’s further transfer to another bank.(Amended by Stats. 1992, Ch. 914, Sec. 24....
• Section 4207.
  (a) A customer or collecting bank that transfers an item and receives a settlement or other consideration warrants to the transferee and to any subsequent collecting...
• Section 4208.
  (a) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, (i) the person obtaining...
• Section 4209.
  (a) A person who encodes information on or with respect to an item after issue warrants to any subsequent collecting bank and to the payor bank...
• Section 4210.
  (a) A collecting bank has a security interest in an item and any accompanying documents or the proceeds of either:(1) In case of an item deposited in...
• Section 4211.
  For purposes of determining its status as a holder in due course, a bank has given value to the extent it has a security interest...
• Section 4212.
  (a) Unless otherwise instructed, a collecting bank may present an item not payable by, through, or at a bank by sending to the party to accept...
• Section 4213.
  (a) With respect to settlement by a bank, the medium and time of settlement may be prescribed by Federal Reserve regulations or circulars, clearing house rules,...
• Section 4214.
  (a) If a collecting bank has made provisional settlement with its customer for an item and fails by reason of dishonor, suspension of payments by a...
• Section 4215.
  (a) An item is finally paid by a payor bank when the bank has first done any of the following:(1) Paid the item in cash.(2) Settled for the...
• Section 4216.
  (a) If an item is in or comes into the possession of a payor or collecting bank that suspends payment and the item has not been...

Last modified: October 22, 2018