§ 26-1-4-205 — Depositary bank holder of unendorsed items

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
endorses the item, and, if the bank satisfies the other requirements
of IC 26-1-3.1-302, 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.
Formerly: Acts 1963, c.317, s.4-205. As amended by
P.L.222-1993, SEC.21.