§ 13-4-502 — Preference to negotiable instruments

(a) Negotiable instruments issued by a bank as drawee in
payment of checks or drafts deposited in any other bank for
collection are entitled to preferred payment upon the insolvency
of the issuing bank.
(b) Negotiable instruments issued by any collecting bank
in exchange for checks or drafts deposited with or forwarded to
the bank for payment by the bank on which the negotiable
instruments are drawn are entitled to preferred payment upon the
insolvency of the collecting bank.
(c) Negotiable instruments issued by a collecting bank in
exchange for notes and other evidences of indebtedness deposited
with or forwarded to the bank for collection are entitled to
preferred payment upon the insolvency of the bank.
(d) The provisions of this section do not affect other
claims entitled by law to preference against insolvent banks.