§ 6A-4-210 - Security interest of collecting bank in items, accompanying documents and proceeds. - Rhode Island Statutes

SECTION 6A-4-210

   § 6A-4-210  Security interest of collectingbank in items, accompanying documents and proceeds. – (a) A collecting bank has a security interest in an item and any accompanyingdocuments or the proceeds of either:

   (1) In case of an item deposited in an account, to the extentto which credit given for the item has been withdrawn or applied;

   (2) In case of an item for which it has given creditavailable for withdrawal as of right, to the extent of the credit given,whether or not the 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   (b) If credit given for several items received at one time orpursuant to a single agreement is withdrawn or applied in part, the securityinterest remains upon all the items, any accompanying documents or the proceedsof either. For the purpose of this section, credits first given are firstwithdrawn.

   (c) Receipt by a collecting bank of a final settlement for anitem is a realization on its security interest in the item, accompanyingdocuments, and proceeds. So long as the bank does not receive final settlementfor the item or give up possession of the item or possession or control of theaccompanying documents for purposes other than collection, the securityinterest continues to that extent and is subject to chapter 9 of this title,but:

   (1) No security agreement is necessary to make the securityinterest enforceable (§ 6A-9-203(b)(3)(i));

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

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