§ 6A-4-205 - Depositary bank holder of unindorsed item. - Rhode Island Statutes

SECTION 6A-4-205

   § 6A-4-205  Depositary bank holder ofunindorsed item. – If a customer delivers an item to a depositary bank for collection:

   (1) The depositary bank becomes a holder of the item at thetime it receives the item for collection if the customer at the time ofdelivery was a holder of the item, whether or not the customer indorses theitem, and, if the bank satisfies the other requirements of § 6A-3-302, itis 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 the item was paidto the customer or deposited to the customer's account.