47-4205

47-4205. 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 47-3302, 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.