30-4-205. Depositary bank holder of unindorsed item. If a customer is a holder of an item that is delivered 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, whether or not the customer indorses, and if it satisfies the other requirements of 30-3-302, it may be a holder in due course; and
(2) the depositary bank warrants to subsequent 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.
History: En. Sec. 4-205, Ch. 264, L. 1963; R.C.M. 1947, 87A-4-205; amd. Sec. 168, Ch. 410, L. 1991.
Structure Montana Code Annotated
Chapter 4. Uniform Commercial Code Bank Deposits and Collections
Part 2. Collection of Items Depositary and Collecting Banks
30-4-202. Responsibility for collection or return -- when action timely
30-4-203. Effect of instructions
30-4-204. Methods of sending and presenting -- sending directly to payor bank
30-4-205. Depositary bank holder of unindorsed item
30-4-206. Transfer between banks
30-4-208. Security interest of collecting bank in items, accompanying documents, and proceeds
30-4-209. When bank gives value for purposes of holder in due course
30-4-211. Medium and time of settlement by bank
30-4-212. Right of charge-back or refund -- liability of collecting bank -- return of item
30-4-214. Insolvency and preference