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

Indiana Statutes

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

Indiana § 26-1-4-205

Title 26COMMERCIAL LAW

Art. 1UNIFORM COMMERCIAL CODE

Ch. 4Bank Deposits and Collections

This text of Indiana § 26-1-4-205 (Depositary bank holder of unendorsed items) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 26-1-4-205 (2026).

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 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.

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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.