47-4201. Status of collecting bank as agent and provisional status of credits; applicability of chapter; item indorsed " pay any bank" A. Unless a contrary intent clearly appears 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 […]
47-4202. 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 non-payment or returning an item other than a documentary draft to the bank’s transferor after learning that the item has not been […]
47-4203. Effect of instructions Subject to chapter 3 of this title concerning conversion of instruments (section 47-3420) and restrictive indorsements (section 47-3206), 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 […]
47-4204. 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 […]
47-4205. Depositary bank 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 […]
47-4206. Transfer between banks Any agreed method that identifies the transferor bank is sufficient for the item’s further transfer to another bank.
47-4207. 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 […]
47-4208. Presentment warranties A. 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 […]
47-4209. 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 depositary bank encodes, that bank also makes the warranty. B. […]
47-4210. Security interest of collecting bank in items, accompanying documents and proceeds A. A collecting bank has a security interest in an item and any accompanying documents or the proceeds of either: 1. In case of an item deposited in an account, to the extent to which credit given for the item has been withdrawn […]
47-4211. 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 section 47-3302 on what constitutes a […]
47-4212. Presentment by notice of item not payable by, through or at a bank; liability of drawer or indorser A. 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 […]
47-4213. Medium and time of settlement by bank A. 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: 1. The medium of settlement is cash or credit to an […]
47-4214. Right of charge-back or refund; liability of collecting bank; return of item A. 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 settlement for the item which is or becomes final, the bank […]
47-4215. Final payment of item by payor bank; when provisional debits and credits become final; when certain credits become available for withdrawal A. An item is finally paid by a payor bank when the bank has first done any of the following: 1. Paid the item in cash; 2. Settled for the item without having […]
47-4216. Insolvency and preference A. 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 […]
