If a customer delivers an item to a depositary bank for collection:

Terms Used In Minnesota Statutes 336.4-205

  • Account: means any deposit or credit account with a bank, including a demand, time, savings, passbook, share draft, or like account, other than an account evidenced by a certificate of deposit;

    (2) "Afternoon" means the period of a day between noon and midnight;

    (3) "Banking day" means that part of any day, excluding Saturday, Sunday, and holidays, on which a bank is open to the public for carrying on substantially all of its banking functions;

    (4) "Clearinghouse" means an association of banks or other payors regularly clearing items;

    (5) "Customer" means a person having an account with a bank or for whom a bank has agreed to collect items, including a bank that maintains an account at another bank;

    (6) "Documentary draft" means a draft to be presented for acceptance or payment if specified documents, certificated securities (section 336. See Minnesota Statutes 336.4-104

(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 336.3-302, 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.