§ 4-4-205 — Depositary bank holder of unindorsed item

Colorado § 4-4-205

• Jurisdiction: Colorado
• Title 04: Uniform
• Art.: Bank Deposits and Collections

Text

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 4-3-302, 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.

Legislative History

Source: L. 94: Entire article amended with relocations, p. 887, � 2, effective January 1, 1995.