25-4-205. Depositary bank holder of unindorsed item.
If a customer delivers an item 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 if the customer at the time of delivery was a holder of the item, whether or not the customer indorses the item, and, if the bank satisfies the other requirements of G.S. 25-3-302, it is a holder in due course; and
(2) The depositary bank warrants to 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. (1965, c. 700, s. 1; 1995, c. 232, s. 2.)
Structure North Carolina General Statutes
North Carolina General Statutes
Chapter 25 - Uniform Commercial Code
Article 4 - Bank Deposits and Collections.
§ 25-4-103 - Variation by agreement; measure of damages; action constituting ordinary care.
§ 25-4-104 - Definitions and index of definitions.
§ 25-4-105.1 - Payable through or payable at bank; collecting bank.
§ 25-4-106 - Separate office of a bank.
§ 25-4-107 - Time of receipt of items.
§ 25-4-110 - Electronic presentment.
§ 25-4-111 - Statute of limitations.
§ 25-4-202 - Responsibility for collection or return; when action timely.
§ 25-4-203 - Effect of instructions.
§ 25-4-204 - Methods of sending and presenting; sending directly to payor.
§ 25-4-205 - Depositary bank holder of unindorsed item.
§ 25-4-206 - Transfer between banks.
§ 25-4-207 - Transfer warranties.
§ 25-4-207.1 - Presentment warranties.
§ 25-4-207.2 - Encoding and retention warranties.
§ 25-4-208 - Security interest of collecting bank in items, accompanying documents and proceeds.
§ 25-4-209 - When bank gives value for purposes of holder in due course.
§ 25-4-211 - Medium and time of settlement by bank.
§ 25-4-212 - Right of charge-back or refund; liability of collecting bank; return of item.
§ 25-4-214 - Insolvency and preference.
§ 25-4-302 - Payor bank's responsibility for late return of item.
§ 25-4-401 - When bank may charge customer's account.
§ 25-4-403 - Customer's right to stop payment; burden of proof of loss.
§ 25-4-404 - Bank not obligated to pay check more than six months old.
§ 25-4-405 - Death or incompetence of customer.
§ 25-4-406 - Customer's duty to discover and report unauthorized signature or alteration.
§ 25-4-407 - Payor bank's right to subrogation on improper payment.
§ 25-4-502 - Presentment of "on arrival" drafts.
§ 25-4-504 - Privilege of presenting bank to deal with goods; security interest for expenses.