§ 25-4-205. Depositary bank holder of unindorsed item. - North Carolina Statutes

§25‑4‑205.  Depositary bank holder of unindorsed item.

If a customer delivers an itemto a depositary bank for collection:

(1)        The depositary bankbecomes a holder of the item at the time it receives the item for collection ifthe customer at the time of delivery was a holder of the item, whether or notthe customer indorses the item, and, if the bank satisfies the otherrequirements of G.S. 25‑3‑302, it is a holder in due course; and

(2)        The depositary bankwarrants to collecting banks, the payor bank or other payor, and the drawerthat the amount of the item was paid to the customer or deposited to thecustomer's account. (1965, c. 700, s. 1; 1995, c. 232, s. 2.)