Iowa Code 554.4205 – Depositary bank holder of unendorsed item
Current as of: 2023 | Check for updates
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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 section 554.3302, it is a holder in due course; and
Terms Used In Iowa Code 554.4205
- Account: means the same as defined in section 554. See Iowa Code 554E.1
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.