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 363-302, 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.
HISTORY: 1962 Code Section 10.4-205; 1966 (54) 2716; 2008 Act No. 204, Section 3, eff July 1, 2008.
Structure South Carolina Code of Laws
Chapter 4 - Commercial Code - Bank Deposits And Collections
Section 36-4-101. Short title.
Section 36-4-102. Applicability
Section 36-4-103. Variation by agreement; measure of damages; action constituting ordinary care.
Section 36-4-104. Definitions and index of definitions.
Section 36-4-105. Definitions of types of banks.
Section 36-4-106. Payable through or payable at bank; collecting bank.
Section 36-4-107. Separate office of bank.
Section 36-4-108. Time of receipt of items.
Section 36-4-110. Electronic presentment.
Section 36-4-111. Statute of limitations.
Section 36-4-202. Responsibility for collections or return; when action timely.
Section 36-4-203. Effect of instructions.
Section 36-4-204. Methods of sending and presenting; sending directly to payor bank.
Section 36-4-205. Depositary bank holder of unindorsed item.
Section 36-4-206. Transfer between banks.
Section 36-4-207. Transfer warranties.
Section 36-4-208. Presentment warranties.
Section 36-4-209. Encoding and retention warranties.
Section 36-4-211. When bank gives value for purposes of holder in due course.
Section 36-4-213. Medium and time of settlement by bank.
Section 36-4-214. Right of charge-back or refund; liability of collecting bank; return of item.
Section 36-4-216. Insolvency and preference.
Section 36-4-302. Payor bank's responsibility for late return of item.
Section 36-4-401. When bank may charge customer's account.
Section 36-4-403. Customer's right to stop payment; burden of proof of loss.
Section 36-4-404. Bank not obliged to pay check more than six months old.
Section 36-4-405. Death or incompetence of a customer.
Section 36-4-406. Customer's duty to discover and report unauthorized signature or alteration.
Section 36-4-407. Payor bank's right to subrogation on improper payment.
Section 36-4-502. Presentment of "on arrival" drafts.
Section 36-4-504. Privilege of presenting bank to deal with goods; security interest for expenses.