Ifa customer delivers an item to a depositary bank for collection: 1. The depositary bank becomes a holder of the item at the time itreceives the item for collection ifthe 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 2. The depositary bank warrants to collecting banks, the payor bank or other payor, and the drawer that the amount of the item waspaid to the customer or deposited to thecustomer’s account.
‹ Prev All Iowa sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.