§ 34.1-4-201 — Status of collecting bank as agent and provisional status of credits; applicability of article; item indorsed "pay any bank"

Wyoming § 34.1-4-201

• Jurisdiction: Wyoming
• Title 34.1: Uniform Commercial Code
• Art. 4: BANK DEPOSITS AND COLLECTIONS

Text

(a) Unless a contrary intent clearly appears and before
the time that a settlement given by a collecting bank for an
item is or becomes final, the bank, with respect to the item, is
an agent or subagent of the owner of the item and any settlement
given for the item is provisional. This provision applies
regardless of the form of indorsement or lack of indorsement and
even though credit given for the item is subject to immediate
withdrawal as of right or is in fact withdrawn; but the
continuance of ownership of an item by its owner and any rights
of the owner to proceeds of the item are subject to rights of a
collecting bank, such as those resulting from outstanding
advances on the item and rights of recoupment or setoff. If an
item is handled by banks for purposes of presentment, payment,
collection, or return, the relevant provisions of this article
apply even though action of the parties clearly establishes that
a particular bank has purchased the item and is the owner of it.
(b) After an item has been indorsed with the words "pay
any bank" or the like, only a bank may acquire the rights of a
holder until the item has been:
(i) Returned to the customer initiating collection;
or
(ii) Specially indorsed by a bank to a person who is
not a bank.