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 for collection if the customer at the time of delivery was a holder of the item, whether or not the customer endorses the item, and, if the bank satisfies the other requirements of section 42a-3-302, it is a holder in due course; and (2) the depositary bank warrants to collecting banks, the payor bank or other payor, and the drawer that the amount of the item was paid to the customer or deposited to the customer's account.
(1959, P.A. 133, S. 4-205; P.A. 91-304, S. 83.)
History: P.A. 91-304 entirely replaced former provisions re authority of a depositary bank to supply a customer's endorsement and the effect on an intermediary bank or payor bank which is not a depositary bank of a restrictive endorsement of a person other than the bank's immediate transferor with provisions re when a depositary bank becomes a holder and the warranty it gives when a customer delivers an item to such bank for collection.
Structure Connecticut General Statutes
Title 42a - Uniform Commercial Code
Article 4 - Bank Deposits and Collections
Section 42a-4-101. - Short title: Uniform Commercial Code–Bank Deposits and Collections.
Section 42a-4-102. - Applicability.
Section 42a-4-103. - Variation by agreement. Measure of damages. Action constituting ordinary care.
Section 42a-4-104. - Definitions and index of definitions.
Section 42a-4-106. - Payable through or payable at bank. Collecting bank.
Section 42a-4-107. - Separate office of bank.
Section 42a-4-108. - Time of receipt of items.
Section 42a-4-110. - Electronic presentment.
Section 42a-4-111. - Statute of limitations.
Section 42a-4-202. - Responsibility for collection or return. When action timely.
Section 42a-4-203. - Effect of instructions.
Section 42a-4-204. - Methods of sending and presenting. Sending directly to payor bank.
Section 42a-4-205. - Depositary bank holder of unendorsed item.
Section 42a-4-206. - Transfer between banks.
Section 42a-4-207. - Transfer warranties.
Section 42a-4-208. - Presentment warranties.
Section 42a-4-209. - Encoding and retention warranties.
Section 42a-4-211. - When bank gives value for purposes of holder in due course.
Section 42a-4-213. - Medium and time of settlement by bank.
Section 42a-4-214. - Right of charge-back or refund. Liability of collecting bank. Return of item.
Section 42a-4-216. - Insolvency and preference.
Section 42a-4-302. - Payor bank's responsibility for late return of item.
Section 42a-4-401. - When bank may charge customer's account.
Section 42a-4-403. - Customer's right to stop payment. Burden of proof of loss.
Section 42a-4-404. - Bank not obligated to pay check more than six months old.
Section 42a-4-405. - Death or incompetence of customer.
Section 42a-4-406. - Customer's duty to discover and report unauthorized signature or alteration.
Section 42a-4-407. - Payor bank's right to subrogation on improper payment.