Section 74.2010 – Status of collecting bank as agent and provisional status of credits; applicability of chapter; item indorsed “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 becomes final the bank, with respect to the item, is an agent or subagent of the owner of the item and any settlement given for the item is provisional. This provision […]

Section 74.2020 – Responsibility for collection; when action timely.

(1) A collecting bank must exercise ordinary care in: (a) Presenting an item or sending it for presentment; (b) 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 paid or accepted, as the case may be; (c) […]

Section 74.2030 – Effect of instructions.

Subject to ORS 73.0420 concerning conversion of instruments and ORS chapter 73 and this chapter concerning restrictive indorsements, 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 in […]

Section 74.2040 – Methods of sending and presenting; 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 of those items on hand, the cost of collection involved, and the method generally used by it or others to present those items. (2) A collecting bank may send: (a) An […]

Section 74.2050 – Depositary bank as holder of unindorsed item.

If a customer delivers an item to a depositary bank for collection: (1) The depositary 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 the customer indorses the item, and, if […]

Section 74.2060 – Transfer between banks.

Any agreed method that identifies the transferor bank is sufficient for the item’s further transfer to another bank. [1961 c.726 §74.2060; 1993 c.545 §89]

Section 74.2070 – Warranties of customer and collecting bank on transfer of item; dishonor of item; remedies; when claim accrues.

(1) 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: (a) The warrantor is a person entitled to enforce the item; (b) All signatures on the item are authentic and authorized; (c) The item has not been […]

Section 74.2080 – Presentment warranties; remedies; defenses; payment of dishonored draft; warranty disclaimer not applicable to checks; when warranty claim accrues.

(1) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, the person obtaining payment or acceptance, at the time of presentment, and a previous transferor of the draft, at the time of transfer, warrant to the drawee that pays or accepts the draft […]

Section 74.2090 – Encoding and retention warranties; remedies.

(1) 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 depositary bank encodes, that bank also makes the warranty. (2) A person who undertakes to […]

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 […]

Section 74.2110 – Bank 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 interest in an item, if the bank otherwise complies with the requirements of ORS 73.0302 on what constitutes a holder in due course. [1961 c.726 §74.2110; 1993 c.545 §94]

Section 74.2120 – Presentment by notice of item not payable by, through or at bank; liability of drawer or indorser.

(1) 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 or pay a written notice that the bank holds the item for acceptance or payment. The notice must be sent in time to be received on or before the […]

Section 74.2130 – Medium and time of settlement by bank.

(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 rules and the like, or agreement. In the absence of such prescription: (a) The medium of settlement is cash or credit to an account in a Federal Reserve Bank of […]

Section 74.2140 – Right of charge-back or refund; liability of collecting bank; return of item.

(1) 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 bank or otherwise to receive a settlement for the item which is or becomes final, the bank may revoke the settlement given by it, charge back the amount of […]

Section 74.2150 – Final payment of item by payor bank; when provisional debits and credits become final; when certain credits become available 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 in cash; (b) Settled for the item without having a right to revoke the settlement under statute, clearing house rule or agreement; or (c) Made a provisional settlement for the item […]

Section 74.2160 – Insolvency and preference.

(1) 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 finally paid, the item must be returned by the receiver, trustee or agent in charge of the closed bank to the presenting bank or the closed bank’s customer. (2) […]

Section 74.3010 – Deferred posting; recovery of payment by return of items; time of dishonor; return of items by payor bank.

(1) If a payor bank settles for a demand item other than a documentary draft presented otherwise than for immediate payment over the counter before midnight of the banking day of receipt, the payor bank may revoke the settlement and recover the settlement if, before it has made final payment and before its midnight deadline, […]

Section 74.3020 – Payor bank’s responsibility for late return of item; defenses to liability of payor bank.

(1) Pursuant to ORS 74.2070 (1), if an item is presented to and received by a payor bank, the bank is accountable for the amount of: (a) A demand item, other than a documentary draft, whether properly payable or not, if the bank, in any case in which it is not also the depositary bank, […]

Section 74.3030 – When items subject to notice, stop payment order, legal process or setoff; order in which items may be charged or certified; cutoff hour for checks.

(1) Any knowledge, notice or stop payment order received by, legal process served upon, or setoff exercised by a payor bank comes too late to terminate, suspend or modify the bank’s right or duty to pay an item or to charge its customer’s account for the item if the knowledge, notice, stop payment order or […]