Michigan Compiled Laws 174-1962-4-2 Part 2 Collection Of Items: Depositary And Collecting Banks (440.4201...440.4216)

• Section 440.4201 Agency Status Of Banks; Provisional Status Of Credits; Applicability Of Article; Endorsement With Pay Any Bank.
  (1) Unless a contrary intent clearly appears and before the time that a settlement given by a collecting bank for an item is or...
• Section 440.4202 Collecting Bank; Duties; Exercising Ordinary Care; Liability.
  (1) A collecting bank must exercise ordinary care in all of the following: (a) Presenting an item or sending it for presentment. (b) Sending...
• Section 440.4203 Collecting Bank; Instructions From Transferor.
  Subject to article 3 concerning conversion of instruments (section 3420) and restrictive endorsements (section 3206) only a collecting bank's transferor can give instructions that...
• Section 440.4204 Collecting Bank; Methods Of Sending Items; Presentment.
  (1) A collecting bank shall send items by a reasonably prompt method, taking into consideration relevant instructions, the nature of the item, the number...
• Section 440.4205 Depositary Bank; Item Delivered By Customer For Collection.
  If a customer delivers an item to a depositary bank for collection, then both of the following apply: (a) The depositary bank becomes a...
• Section 440.4206 Transfer Between Banks.
  Any agreed method which identifies the transferor bank is sufficient for the item's further transfer to another bank. History: 1962, Act 174, Eff. Jan....
• Section 440.4207 Warranties Of Customer And Collecting Bank On Transfer Of Items; Accrual Of Cause Of Action.
  (1) A customer or collecting bank that transfers an item and receives a settlement or other consideration warrants to the transferee and to any...
• Section 440.4208 Presentment Of Unaccepted Or Dishonored Draft; Warranties Of Person Obtaining Payment And Prior Transferor; Discharge; Accrual Of Cause Of Action.
  (1) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, (i) the...
• Section 440.4209 Electronic Presentment; Encoding Of Information And Retaining Items; Warranties; Recovery Of Damages, Expenses, And Loss Of Interest.
  (1) A person who encodes information on or with respect to an item after issue warrants to any subsequent collecting bank and to the...
• Section 440.4210 Security Interest Of Collecting Bank In Items, Accompanying Documents, Or Proceeds.
  (1) A collecting bank has a security interest in an item and any accompanying documents or the proceeds of any of the following: (a)...
• Section 440.4211 Bank With Security Interest As Holder In Due Course.
  For purposes of determining its status as a holder in due course, a bank has given value to the extent it has a security...
• Section 440.4212 Presentment By Notice Of Item Not Payable By, Through, Or At A Bank; Treating Item As Dishonored.
  (1) Unless otherwise instructed, a collecting bank may present an item not payable by, through or at a bank by sending to the party...
• Section 440.4213 Settlement; Medium And Time.
  (1) With respect to settlement by a bank, the medium and time of settlement may be prescribed by Federal Reserve regulations or circulars, clearing-house...
• Section 440.4214 Right To Charge-back Or Refund.
  (1) If a collecting bank has made provisional settlement with its customer for an item and itself fails by reason of dishonor, suspension of...
• Section 440.4215 Final Payment Of Items By Payor Bank; Final Credit; Availability Of Credit For Withdrawal.
  (1) An item is finally paid by a payor bank when the bank has first done any of the following: (a) Paid the item...
• Section 440.4216 Payor Or Collecting Bank; Suspension Of Payments.
  (1) If an item is in or comes into the possession of a payor or collecting bank that suspends payment and the item has...

Last modified: October 10, 2016