70A-4-205 - Depositary bank holder of unindorsed item. - Utah Statutes

70A-4-205. Depositary bank holder of unindorsed item.
If a customer delivers an item to a depositary bank for collection:
(1) the depositary bank becomes a holder of the item at the time it receives the item forcollection if the customer at the time of delivery was a holder of the item, whether or not thecustomer indorses the item, and, if the bank satisfies the other requirements of Section70A-3-302, it is a holder in due course; and
(2) the depositary bank warrants to collecting banks, the payor bank or other payor, andthe drawer that the amount of the item was paid to the customer or deposited to the customer'saccount.

Repealed and Re-enacted by Chapter 237, 1993 General Session