applicability of Article — item endorsed “pay any bank”. 1. Unless a contrary intent clearly appears and before thetimethat a settlement given by a collecting bank for an item isor becomes final, the bank, with respect to the item, isan agent or subagent of the owner of the item and any settlement given for the item isprovisional. This provision applies regardless of the form of endorsement or lack of endorsement and even though credit given for the item issubject to immediate withdrawal as of right or is in fact withdrawn; but the continuance of ownership of an item by itsowner and any rights of the owner to proceeds of the item are subject to rights of a collecting bank, such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 ishandled 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. 2. After an item has been endorsed with the words “pay any bank” or the like, only a bank may acquire the rights of a holder until the item has been: a. returned to the customer initiating collection; or b. specially endorsed by a bank to a person who is not a bank.
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