§ 25‑4‑208. Security interest of collecting bank in items, accompanying documents andproceeds.
(a) A collecting bankhas a security interest in an item and any accompanying documents or theproceeds of either:
(1) In case of an itemdeposited in an account, to the extent to which credit given for the item hasbeen withdrawn or applied;
(2) In case of an itemfor which it has given credit available for withdrawal as of right, to theextent of the credit given, whether or not the credit is drawn upon or there isa right of charge‑back; or
(3) If it makes anadvance on or against the item.
(b) If credit given forseveral items received at one time or pursuant to a single agreement iswithdrawn or applied in part, the security interest remains upon all the items,any accompanying documents or the proceeds of either. For the purpose of thissection, credits first given are first withdrawn.
(c) Receipt by acollecting bank of a final settlement for an item is a realization on itssecurity interest in the item, accompanying documents, and proceeds. So long asthe bank does not receive final settlement for the item or give up possessionof the item or possession or control of the accompanying documents for purposesother than collection, the security interest continues to that extent and issubject to Article 9, but:
(1) No securityagreement is necessary to make the security interest enforceable (G.S. 25‑9‑203(b)(3)a.);
(2) No filing isrequired to perfect the security interest; and
(3) The securityinterest has priority over conflicting perfected security interests in theitem, accompanying documents, or proceeds. (1965, c. 700, s. 1; 1995, c. 232, s. 2; 2000‑169,s. 17; 2006‑112, s. 42.)
§ 25‑4‑208. Security interest of collecting bank in items, accompanying documents andproceeds.
(a) A collecting bankhas a security interest in an item and any accompanying documents or theproceeds of either:
(1) In case of an itemdeposited in an account, to the extent to which credit given for the item hasbeen withdrawn or applied;
(2) In case of an itemfor which it has given credit available for withdrawal as of right, to theextent of the credit given, whether or not the credit is drawn upon or there isa right of charge‑back; or
(3) If it makes anadvance on or against the item.
(b) If credit given forseveral items received at one time or pursuant to a single agreement iswithdrawn or applied in part, the security interest remains upon all the items,any accompanying documents or the proceeds of either. For the purpose of thissection, credits first given are first withdrawn.
(c) Receipt by acollecting bank of a final settlement for an item is a realization on itssecurity interest in the item, accompanying documents, and proceeds. So long asthe bank does not receive final settlement for the item or give up possessionof the item or possession or control of the accompanying documents for purposesother than collection, the security interest continues to that extent and issubject to Article 9, but:
(1) No securityagreement is necessary to make the security interest enforceable (G.S. 25‑9‑203(b)(3)a.);
(2) No filing isrequired to perfect the security interest; and
(3) The securityinterest has priority over conflicting perfected security interests in theitem, accompanying documents, or proceeds. (1965, c. 700, s. 1; 1995, c. 232, s. 2; 2000‑169,s. 17; 2006‑112, s. 42.)
§ 25‑4‑208. Security interest of collecting bank in items, accompanying documents andproceeds.
(a) A collecting bankhas a security interest in an item and any accompanying documents or theproceeds of either:
(1) In case of an itemdeposited in an account, to the extent to which credit given for the item hasbeen withdrawn or applied;
(2) In case of an itemfor which it has given credit available for withdrawal as of right, to theextent of the credit given, whether or not the credit is drawn upon or there isa right of charge‑back; or
(3) If it makes anadvance on or against the item.
(b) If credit given forseveral items received at one time or pursuant to a single agreement iswithdrawn or applied in part, the security interest remains upon all the items,any accompanying documents or the proceeds of either. For the purpose of thissection, credits first given are first withdrawn.
(c) Receipt by acollecting bank of a final settlement for an item is a realization on itssecurity interest in the item, accompanying documents, and proceeds. So long asthe bank does not receive final settlement for the item or give up possessionof the item or possession or control of the accompanying documents for purposesother than collection, the security interest continues to that extent and issubject to Article 9, but:
(1) No securityagreement is necessary to make the security interest enforceable (G.S. 25‑9‑203(b)(3)a.);
(2) No filing isrequired to perfect the security interest; and
(3) The securityinterest has priority over conflicting perfected security interests in theitem, accompanying documents, or proceeds. (1965, c. 700, s. 1; 1995, c. 232, s. 2; 2000‑169,s. 17; 2006‑112, s. 42.)
