Sec. 4.205. DEPOSITORY BANK HOLDER OF UNINDORSED ITEM. If a customer delivers an item to a depositary bank for collection, the depositary bank:
(1) 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 3.302, the bank is a holder in due course; and
(2) 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.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1, 1967. Amended by Acts 1995, 74th Leg., ch. 921, Sec. 4, eff. Jan. 1, 1996.
Structure Texas Statutes
Title 1 - Uniform Commercial Code
Chapter 4 - Bank Deposits and Collections
Subchapter B. Collection of Items: Depositary and Collecting Banks
Section 4.202. Responsibility for Collection or Return; When Action Timely
Section 4.203. Effect of Instructions
Section 4.204. Methods of Sending and Presenting; Sending Directly to Payor Bank
Section 4.205. Depository Bank Holder of Unindorsed Item
Section 4.206. Transfer Between Banks
Section 4.207. Transfer Warranties
Section 4.208. Presentment Warranties
Section 4.209. Encoding and Retention Warranties
Section 4.210. Security Interest of Collecting Bank in Items, Accompanying Documents and Proceeds
Section 4.211. When Bank Gives Value for Purposes of Holder in Due Course
Section 4.213. Medium and Time of Settlement by Bank
Section 4.214. Right of Charge-Back or Refund; Liability of Collecting Bank; Return of Item