(1) A depositary bank which has taken an item for collection may
supply any indorsement of the customer which is necessary to title
unless the item contains the words "payee's indorsement required" or the
like. In the absence of such a requirement a statement placed on the
item by the depositary bank to the effect that the item was deposited by
a customer or credited to his account is effective as the customer's
indorsement.
(2) An intermediary bank, or payor bank which is not a depositary
bank, is neither given notice nor otherwise affected by a restrictive
indorsement of any person except the bank's immediate transferor.
Structure New York Laws
Article 4 - Bank Deposits and Collections
Part 2 - Collection of Items: Depositary and Collecting Banks
4-202 - Responsibility for Collection; When Action Seasonable.
4-203 - Effect of Instructions.
4-204 - Methods of Sending and Presenting; Sending Direct to Payor Bank.
4-205 - Supplying Missing Indorsement; No Notice From Prior Indorsement.
4-206 - Transfer Between Banks.
4-208 - Security Interest of Collecting Bank in Items, Accompanying Documents and Proceeds.
4-209 - When Bank Gives Value for Purposes of Holder in Due Course.
4-211 - Media of Remittance; Provisional and Final Settlement in Remittance Cases.