Any agreed method that identifies the transferor bank is sufficient for the item's further transfer to another bank.
History: 1953 Comp., § 50A-4-206, enacted by Laws 1961, ch. 96, § 4-206; 1992, ch. 114, § 172.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
This section is designed to permit the simplest possible form of transfer from one bank to another, once an item gets in the bank collection chain, provided only identity of the transferor bank is preserved. This is important for tracing purposes and if recourse is necessary. However, since the responsibilities of the various banks appear in the Article it becomes unnecessary to have liability or responsibility depend on more formal indorsements. Simplicity in the form of transfer is conducive to speed. If the transfer is between banks, this section takes the place of the more formal requirements of Section 3-201 [55-3-201 NMSA 1978].
The 1992 amendment, effective July 1, 1992, substituted "that" for "which".
Am. Jur. 2d, A.L.R. and C.J.S. references. — 10 Am. Jur. 2d Banks §§ 403, 700.
9 C.J.S. Banks and Banking § 408 et seq.
Structure New Mexico Statutes
Chapter 55 - Uniform Commercial Code
Article 4 - Bank Deposits and Collections
Part 2 - COLLECTION OF ITEMS - DEPOSITARY AND COLLECTING BANKS
Section 55-4-202 - Responsibility for collection or return; when action timely.
Section 55-4-203 - Effect of instructions.
Section 55-4-204 - Methods of sending and presenting; sending directly to payor bank.
Section 55-4-205 - Depositary bank holder of unindorsed item.
Section 55-4-206 - Transfer between banks.
Section 55-4-207 - Transfer warranties.
Section 55-4-208 - Presentment warranties.
Section 55-4-209 - Encoding and retention warranties.
Section 55-4-211 - When bank gives value for purposes of holder in due course.
Section 55-4-213 - Medium and time of settlement by bank.
Section 55-4-214 - Right of charge-back or refund; liability of collecting bank; return of item.