30-4-111. Truncation. (1) "Truncation agreement" means an agreement, clearinghouse rule, or federal reserve regulation or operating circular, providing that presentment of an item may be made by transmission of an image of an item or information describing the item ("presentment notice") rather than delivery of the item itself. The agreement may provide for procedures governing retention, presentment, payment, dishonor, and other matters concerning items subject to the truncation agreement.
(2) If presentment is made pursuant to a truncation agreement, a reference to "item" or "check" in this chapter means the presentment notice unless the context otherwise indicates.
(3) An intermediary bank handling a presentment notice pursuant to a truncation agreement has the rights of a holder of the item to the same extent it would have had rights in the item if the item had been physically transferred to it in the course of collection.
History: En. Sec. 162, Ch. 410, L. 1991.
Structure Montana Code Annotated
Chapter 4. Uniform Commercial Code Bank Deposits and Collections
Part 1. General Provisions and Definitions
30-4-103. Variation by agreement -- measure of damages -- action constituting ordinary care
30-4-104. Definitions and index of definitions
30-4-106. Separate office of a bank
30-4-107. Time of receipt of items
30-4-110. Payable through or payable at bank -- collecting bank