57A-4-205. Depositary bank holder of unendorsed 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 §57A-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.
Source: SL 1994, ch 368, §4-205.
Structure South Dakota Codified Laws
Title 57A - Uniform Commercial Code
Chapter 04 - Bank Deposits And Collections
Section 57A-4-101 - Short title.
Section 57A-4-102 - Applicability.
Section 57A-4-104 - Definitions and index of definitions.
Section 57A-4-106 - Payable through or payable at bank--Collecting bank.
Section 57A-4-107 - Separate office of a bank.
Section 57A-4-108 - Time of receipt of items.
Section 57A-4-110 - Electronic presentment.
Section 57A-4-111 - Statute of limitations.
Section 57A-4-202 - Responsibility for collection or return--When action timely.
Section 57A-4-203 - Effect of instructions.
Section 57A-4-204 - Methods of sending and presenting--Sending directly to payor bank.
Section 57A-4-205 - Depositary bank holder of unendorsed item.
Section 57A-4-206 - Transfer between banks.
Section 57A-4-207 - Transfer warranties.
Section 57A-4-208 - Presentment warranties.
Section 57A-4-209 - Encoding and retention warranties.
Section 57A-4-211 - When bank gives value for purposes of holder in due course.
Section 57A-4-213 - Medium and time of settlement by bank.
Section 57A-4-214 - Right of charge-back or refund; Liability of collecting bank; Return of item.
Section 57A-4-216 - Insolvency and preference.
Section 57A-4-302 - Payor bank's responsibility for late return of item.
Section 57A-4-401 - When bank may charge customer's account.
Section 57A-4-403 - Customer's right to stop payment--Burden of proof of loss.
Section 57A-4-404 - Bank not obligated to pay check more than six months old.
Section 57A-4-405 - Death or incompetence of customer.
Section 57A-4-406 - Customer's duty to discover and report unauthorized signature or alteration.
Section 57A-4-407 - Payor bank's right to subrogation on improper payment.
Section 57A-4-502 - Presentment of "on arrival" drafts.
Section 57A-4-504 - Privilege of presenting bank to deal with goods--Security interest for expenses.