28-4-210. SECURITY INTEREST OF COLLECTING BANK IN ITEMS, ACCOMPANYING DOCUMENTS AND PROCEEDS. (1) A collecting bank has a security interest in an item and any accompanying documents or the proceeds of either:
(a) In case of an item deposited in an account, to the extent to which credit given for the item has been withdrawn or applied;
(b) In case of an item for which it has given credit available 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
(c) If it makes an advance on or against the item.
(2) If credit given for several items received at one (1) time or pursuant to a single agreement is withdrawn or applied in part, the security interest remains upon all the items, any accompanying documents or the proceeds of either. For the purpose of this section, credits first given are first withdrawn.
(3) Receipt by a collecting bank of a final settlement for an item is a realization on its security interest in the item, accompanying documents and proceeds. So long as the bank does not receive final settlement for the item or give up possession of the item or possession or control of the accompanying documents for purposes other than collection, the security interest continues to that extent and is subject to the provisions of chapter 9, title 28, Idaho Code, but:
(a) No security agreement is necessary to make the security interest enforceable (section 28-9-203(b)(3)(A));
(b) No filing is required to perfect the security interest; and
(c) The security interest has priority over conflicting perfected security interests in the item, accompanying documents or proceeds.
History:
[(28-4-210) 1967, ch. 161, sec. 4-208, p. 351; am. and redesig. 1993, ch. 288, sec. 25, p. 1062; am. 2001, ch. 208, sec. 10, p. 809; am. 2004, ch. 42, sec. 19, p. 114.]
Structure Idaho Code
Title 28 - COMMERCIAL TRANSACTIONS
Chapter 4 - UNIFORM COMMERCIAL CODE — BANK DEPOSITS AND COLLECTIONS
Part 2 - COLLECTION OF ITEMS — DEPOSITARY AND COLLECTING BANKS
Section 28-4-202 - RESPONSIBILITY FOR COLLECTION OR RETURN — WHEN ACTION TIMELY.
Section 28-4-203 - EFFECT OF INSTRUCTIONS.
Section 28-4-204 - METHODS OF SENDING AND PRESENTING — SENDING DIRECTLY TO PAYOR BANK.
Section 28-4-205 - DEPOSITARY BANK HOLDER OF UNINDORSED ITEM.
Section 28-4-206 - TRANSFER BETWEEN BANKS.
Section 28-4-207 - TRANSFER WARRANTIES.
Section 28-4-208 - PRESENTMENT WARRANTIES.
Section 28-4-209 - ENCODING AND RETENTION WARRANTIES.
Section 28-4-211 - WHEN BANK GIVES VALUE FOR PURPOSES OF HOLDER IN DUE COURSE.
Section 28-4-213 - MEDIUM AND TIME OF SETTLEMENT BY BANK.
Section 28-4-214 - RIGHT OF CHARGE-BACK OR REFUND — LIABILITY OF COLLECTING BANK — RETURN OF ITEM.