8.4-205.1 - Depositary bank holder of unendorsed item. - Virginia Statutes

§ 8.4-205.1. Depositary bank holder of unendorsed 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 receivesthe item for collection if the customer at the time of the delivery was aholder of the item, whether or not the customer endorses the item, and, ifthe bank satisfies the other requirements of § 8.3A-302, it is a holder indue course; and

(2) the depositary bank warrants to collecting banks, the payor bank or otherpayor, and the drawer that the amount of the item was paid to the customer ordeposited to the customer's account.

(1992, c. 693.)