84-4-101 Short title.
84-4-101. Short title. This article may be cited as uniform commercial code—bank deposits and collections. History: L. 1965, ch. 564, § 201; L. 1991, ch. 296, § 71; Feb. 1, 1992.
84-4-102 Applicability.
84-4-102. Applicability. (a) To the extent that items within this article are also within articles 3 and 8, they are subject to those articles. If there is conflict, this article governs article 3 but article 8 governs this article. (b) The liability of a bank for action or nonaction with respect to an item handled […]
84-4-103 Variation by agreement; measure of damages; action constituting ordinary care.
84-4-103. Variation by agreement; measure of damages; action constituting ordinary care. (a) The effect of the provisions of this article may be varied by agreement but the parties to the agreement cannot disclaim a bank’s responsibility for its lack of good faith or failure to exercise ordinary care or limit the measure of damages for […]
84-4-104 Definitions and index of definitions.
84-4-104. Definitions and index of definitions. (a) In this article, unless the context otherwise requires: (1) “Account” means any deposit or credit account with a bank, including a demand, time, savings, passbook, share draft, or like account, other than an account evidenced by a certificate of deposit; (2) “Afternoon” means the period of a day […]
84-4-105 “Bank”; “depositary bank”; “payor bank”; “intermediary bank”; “collecting bank”; “presenting bank”.
84-4-105. “Bank”; “depositary bank”; “payor bank”; “intermediary bank”; “collecting bank”; “presenting bank”. In this article: (1) “Bank” means a person engaged in the business of banking, including a savings bank, savings and loan association, credit union, or trust company. (2) “Depository bank” means the first bank to take an item even though it is also […]
84-4-106 Payable through or payable at bank; collecting bank.
84-4-106. Payable through or payable at bank; collecting bank. (a) If an item states that it is “payable through” a bank identified in the item, (1) the item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item, and (2) the item may be presented for […]
84-4-107 Separate office of bank.
84-4-107. Separate office of bank. A branch or separate office of a bank is a separate bank for the purpose of computing the time within which and determining the place at or to which action may be taken or notices or orders must be given under this article and under article 3. History: L. 1965, […]
84-4-108 Time of receipt of items.
84-4-108. Time of receipt of items. (a) For the purpose of allowing time to process items, prove balances, and make the necessary entries on its books to determine its position for the day, a bank may fix an afternoon hour of two p.m. or later as a cutoff hour for the handling of money and […]
84-4-109 Delays.
84-4-109. Delays. (a) Unless otherwise instructed, a collecting bank in a good faith effort to secure payment of a specific item drawn on a payor other than a bank, and with or without the approval of any person involved, may waive, modify, or extend time limits imposed or permitted by this act for a period […]
84-4-110 Electronic presentment.
84-4-110. Electronic presentment. (a) “Agreement for electronic presentment” means an agreement, clearing-house rule, or federal reserve regulation or operating circular, providing that presentment of an item may be made by transmission of an image of an item or information describing the item (“presentment notice”) rather than delivery of the item itself. The agreement may provide […]
84-4-111 Statute of limitations.
84-4-111. Statute of limitations. An action to enforce an obligation, duty, or right arising under this article must be commenced within three years after the cause of action accrues. History: L. 1991, ch. 296, § 81; Feb. 1, 1992.
84-4-201 Status of collecting bank as agent and provisional status of credits; applicability of article; item endorsed “pay any bank”.
84-4-201. Status of collecting bank as agent and provisional status of credits; applicability of article; item endorsed “pay any bank”. (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, the bank, with respect to the item, is an […]
84-4-202 Responsibility for collection or return; when action timely.
84-4-202. Responsibility for collection or return; when action timely. (a) A collecting bank must exercise ordinary care in: (1) Presenting an item or sending it for presentment; (2) sending notice of dishonor or nonpayment or returning an item other than a documentary draft to the bank’s transferor after learning that the item has not been […]
84-4-203 Effect of instructions.
84-4-203. Effect of instructions. Subject to article 3 concerning conversion of instruments (K.S.A. 84-3-419) and restrictive endorsements (K.S.A. 84-3-206), only a collecting bank’s transferor can give instructions that affect the bank or constitute notice to it, and a collecting bank is not liable to prior parties for any action taken pursuant to the instructions or […]
84-4-204 Methods of sending and presenting; sending directly to payor bank.
84-4-204. Methods of sending and presenting; sending directly to payor bank. (a) A collecting bank shall send items by a reasonably prompt method, taking into consideration relevant instructions, the nature of the item, the number of those items on hand, the cost of collection involved, and the method generally used by it or others to […]
84-4-205 Depository bank holder of unendorsed item.
84-4-205. Depository bank holder of unendorsed item. If a customer delivers an item to a depository bank for collection: (a) The depository 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 […]
84-4-206 Transfer between banks.
84-4-206. Transfer between banks. Any agreed method that identifies the transferor bank is sufficient for the item’s further transfer to another bank. History: L. 1965, ch. 564, § 215; L. 1991, ch. 296, § 87; Feb. 1, 1992.
84-4-207 Transfer warranties.
84-4-207. Transfer warranties. (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 bank that: (1) The warrantor is a person entitled to enforce the item; (2) all signatures on the item are authentic and authorized; (3) the item […]
84-4-208 Presentment warranties.
84-4-208. Presentment warranties. (a) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, (1) the person obtaining payment or acceptance, at the time of presentment, and (2) a previous transferor of the draft, at the time of transfer, warrant to the drawee that […]
84-4-209 Encoding and retention warranties.
84-4-209. Encoding and retention warranties. (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 or other payor that the information is correctly encoded. If the customer of a depository bank encodes, that bank also makes the warranty. (b) […]