400.4-210. Security interest of collecting bank in items, accompanying documents and proceeds. - Missouri Statutes

Security interest of collecting bank in items, accompanying documentsand proceeds.

400.4-210. (a) A collecting bank has a security interest in an itemand any accompanying documents or the proceeds of either:

(1) in case of an item deposited in an account, to the extent towhich credit given for the item has been withdrawn or applied;

(2) in case of an item for which it has given credit available forwithdrawal as of right, to the extent of the credit given whether or notthe credit is drawn upon or there is a right of charge-back; or

(3) if it makes an advance on or against the item.

(b) If credit given for several items received at one time orpursuant to a single agreement is withdrawn or applied in part, thesecurity interest remains upon all the items, any accompanying documents orthe proceeds of either. For the purpose of this section, credits firstgiven are first withdrawn.

(c) Receipt by a collecting bank of a final settlement for an item isa realization on its security interest in the item, accompanying documentsand proceeds. So long as the bank does not receive final settlement forthe item or give up possession of the item or accompanying documents forpurposes other than collection, the security interest continues to thatextent and is subject to Article 9, but:

(1) no security agreement is necessary to make the security interestenforceable (Section 400.9-203(b)(3)(A));

(2) no filing is required to perfect the security interest; and

(3) the security interest has priority over conflicting perfectedsecurity interests in the item, accompanying documents or proceeds.

(L. 1992 S.B. 448, A.L. 2001 S.B. 288)

Effective 7-01-01