§ 4205. 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 section 3302 (relating to holder in due course), 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. (July 9, 1992, P.L.507, No.97, eff. one year)
Structure Pennsylvania Consolidated & Unconsolidated Statutes
Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 42 - Collection of Items: Depositary and Collecting Banks
Section 4202 - Responsibility for collection or return; when action timely
Section 4203 - Effect of instructions
Section 4204 - Methods of sending and presenting; sending directly to payor bank
Section 4205 - Depositary bank holder of unindorsed item
Section 4206 - Transfer between banks
Section 4207 - Transfer warranties
Section 4208 - Presentment warranties
Section 4209 - Encoding and retention warranties
Section 4210 - Security interest of collecting bank in items, accompanying documents and proceeds
Section 4211 - When bank gives value for purposes of holder in due course
Section 4213 - Medium and time of settlement by bank
Section 4214 - Right of charge-back or refund; liability of collecting bank; return of item