US Lawyer Database

674.216 – Insolvency and preference.

674.216 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 […]

674.207 – Transfer warranties.

674.207 Transfer warranties.— (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 altered; (d) The […]

674.2081 – Presentment warranties.

674.2081 Presentment warranties.— (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 who pays or accepts the […]

674.2091 – Encoding and retention warranties.

674.2091 Encoding and retention warranties.— (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 […]

674.2111 – When bank gives value for purposes of holder in due course.

674.2111 When bank gives value for purposes of 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 s. 673.3021 on what constitutes a holder in […]

674.2131 – Medium and time of settlement by bank.

674.2131 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, clearinghouse 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 […]