400.4-205. Depositary bank holder of unendorsed item. - Missouri Statutes

Depositary bank holder of unendorsed item.

400.4-205. If a customer delivers an item to a depositarybank for collection:

(1) the depositary bank becomes a holder of the item at thetime it receives the item for collection if the customer at thetime of delivery was a holder of the item, whether or not thecustomer endorses the item, and, if the bank satisfies the otherrequirements of Section 400.3-302, it is a holder in due course;and

(2) the depositary bank warrants to collecting banks, thepayor bank or other payor, and the drawer that the amount of theitem was paid to the customer or deposited to the customer'saccount.

(L. 1963 p. 503 § 4-205, A.L. 1992 S.B. 448)