PART 2. 
COLLECTION OF ITEMS:



DEPOSITARY
AND COLLECTING BANKS



 



§490:4-201  Status of collecting bank as
agent and provisional status of credits; applicability of article; item
indorsed "pay any bank".  (a)  Unless a contrary intent clearly
appears and before the time that a settlement given by a collecting bank for an
item is or becomes final, the bank, with respect to the item, is an agent or
subagent of the owner of the item and any settlement given for the item is
provisional.  This provision applies regardless of the form of indorsement or
lack of indorsement and even though credit given for the item is subject to
immediate withdrawal as of right or is in fact withdrawn; but the continuance
of ownership of an item by its owner and any rights of the owner to proceeds of
the item are subject to rights of a collecting bank, such as those resulting
from outstanding advances on the item and rights of recoupment or setoff.  If
an item is handled by banks for purposes of presentment, payment, collection,
or return, the relevant provisions of this article apply even though action of
the parties clearly establishes that a particular bank has purchased the item
and is the owner of it.



(b)  After an item has been indorsed with the
words "pay any bank" or the like, only a bank may acquire the rights
of a holder until the item has been:



(1)  Returned to the customer initiating collection;
or



(2)  Specially indorsed by a bank to a person who is
not a bank. [L 1965, c 208, §4-201; HRS §490:4-201; am L 1991, c 118, pt of §4]