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(a) In case of an item deposited in an account, to the extent to which credit given for the item has been withdrawn or applied;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(2) If credit given for several items received at one time or pursuant to a single agreement is withdrawn or applied in part, the security interest remains upon all the items, any accompanying documents or the proceeds of either. For the purpose of this action, credits first given are first withdrawn.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