State Codes and Statutes
Statutes > Virginia > Title-8-4 > Part-2 > 8-4-201§ 8.4-201. Status of collecting bank as agent and provisional status ofcredits; applicability of title; item endorsed "pay any bank.".
(a) Unless a contrary intent clearly appears and before the time that asettlement given by a collecting bank for an item is or becomes final, thebank, with respect to the item, is an agent or subagent of the owner of theitem and any settlement given for the item is provisional. This provisionapplies regardless of the form of endorsement or lack of endorsement and eventhough credit given for the item is subject to immediate withdrawal as ofright or is in fact withdrawn; but the continuance of ownership of an item byits owner and any rights of the owner to proceeds of the item are subject torights of a collecting bank such as those resulting from outstanding advanceson the item and rights of recoupment or setoff. If an item is handled bybanks for purposes of presentment, payment, collection or return, therelevant provisions of this title apply even though action of the partiesclearly establishes that a particular bank has purchased the item and is theowner of it.
(b) After an item has been endorsed with the words "pay any bank" or thelike, 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 endorsed by a bank to a person who is not a bank.
(1964, c. 219; 1992, c. 693.)
