New Jersey Statutes 12A:4-205. Depositary bank holder of unindorsed item
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Terms Used In New Jersey Statutes 12A: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. See New Jersey Statutes 12A:4-104
- Bank: means a person engaged in the business of banking, including a savings bank, savings and loan association, credit union, or trust company. See New Jersey Statutes 12A:4-105
- 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. See New Jersey Statutes 12A:4-104
- Depositary bank: means the first bank to take an item even though it is also the payor bank, unless the item is presented for immediate payment over the counter. See New Jersey Statutes 12A:4-105
- Item: means an instrument or a promise or order to pay money handled by a bank for collection or payment. See New Jersey Statutes 12A:4-104
- Payor bank: means a bank that is the drawee of a draft. See New Jersey Statutes 12A:4-105
If a customer delivers an item to a depositary bank for collection:
a. 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 indorses the item, and, if the bank satisfies the other requirements of 12A:3-302, it is a holder in due course; and
b. 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.
L.1995,c.28,s.2.