404.201 Status of collecting bank as agent and provisional status of credits; applicability of chapter; item endorsed “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 […]
404.202 Responsibility for collection or return; when action timely. (1) A collecting bank must exercise ordinary care in all of the following: (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 […]
404.203 Effect of instructions. Subject to s. 403.420 concerning conversion of instruments and to s. 403.206 concerning restrictive endorsements, 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 […]
404.204 Methods of sending and presenting; sending directly to payer bank. (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 […]
404.205 Depositary bank holder of unendorsed item. If a customer delivers an item to a depositary bank for collection, all of the following apply: (1) The depositary bank becomes a holder of the item at the time that it receives the item for collection if the customer at the time of delivery was a holder […]
404.206 Transfer between banks. Any agreed method that identifies the transferor bank is sufficient for the item’s further transfer to another bank. History: 1995 a. 449.
404.207 Transfer warranties. (1) A customer or collecting bank that transfers an item and receives a settlement or other consideration warrants all of the following to the transferee and to any subsequent collecting bank: (a) The warrantor is a person entitled to enforce the item. (b) All signatures on the item are authentic and authorized. […]
404.208 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 that pays or […]
404.209 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 payer bank or other payer that the information is correctly encoded. If the customer of a depositary bank encodes, that bank also makes the warranty. (2) […]
404.210 Security interest of collecting bank in items, accompanying documents and proceeds. (1) A collecting bank has a security interest in an item and any accompanying documents or the proceeds of either in any of the following situations: (a) In case of an item deposited in an account, to the extent to which credit given […]
404.211 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 that it has a security interest in an item, if the bank otherwise complies with s. 403.302 on what constitutes a holder in […]
404.212 Presentment by notice of item not payable by, through or at a bank; liability of drawer or endorser. (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 […]
404.213 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, all of the following apply: (a) The medium of settlement is […]
404.214 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 settlement for the item which is or becomes final, the bank […]
404.215 Final payment of item by payer bank; when provisional debits and credits become final; when certain credits become available for withdrawal. (1) An item is finally paid by a payer bank when the bank has first done any of the following: (a) Paid the item in cash. (b) Settled for the item without having […]
404.216 Insolvency and preference. (1) If an item is in or comes into the possession of a payer 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 […]
