Oregon Statutes - Chapter 74 - Bank Deposits and Collections - Section 74.2100 - Security interest of collecting bank in items; priority.

(1) A collecting bank has a security interest in an item and in any accompanying documents or in the proceeds of either:

(a) In case of an item deposited in an account, to the extent to which credit given for the item has been withdrawn or applied;

(b) In case of an item for which it has given credit available for withdrawal as of right, to the extent of the credit given, whether or not the credit is drawn upon or there is a right of charge-back; or

(c) If it makes an advance on or against the item.

(2) If credit given for several items received at one time or pursuant to a single agreement is withdrawn or applied in part, the security interest remains upon all the items, any accompanying documents or the proceeds of either. For the purpose of this action, credits first given are first withdrawn.

(3) Receipt by a collecting bank of a final settlement for an item is a realization on its security interest in the item, accompanying documents and proceeds. So long as the bank does not receive final settlement for the item or give up possession of the item or accompanying documents for purposes other than collection, the security interest continues to that extent and is subject to ORS chapter 79, but:

(a) No security agreements are necessary to make the security interest enforceable under ORS 79.0203 (2)(c)(A);

(b) No filing is required to perfect the security interest; and

(c) The security interest has priority over conflicting perfected security interests in the item, accompanying documents or proceeds. [1961 c.726 §74.2100; 1993 c.545 §93; 2001 c.445 §146]

Section:  Previous  74.2030  74.2040  74.2050  74.2060  74.2070  74.2080  74.2090  74.2100  74.2110  74.2120  74.2130  74.2140  74.2150  74.2160  74.3010  Next

Last modified: August 7, 2008