Bank Deposits and Collections

ORS 74.2050
Depositary bank as holder of unindorsed item


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 indorses the item, and, if the bank satisfies the other requirements of ORS 73.0302 (Holder in due course), 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. [1961 c.726 §74.2050 (Depositary bank as holder of unindorsed item); 1993 c.545 §88]

Notes of Decisions

Unindorsed check bearing only depositary bank's stamp "Pay any bank--PEG" (prior endorsements guaranteed) was not properly payable; "P.E.G." stamp did not suffice as missing customer's indorsement under this section. Barber v. U.S. National Bank, 90 Or App 68, 750 P2d 1183 (1988)


Source

Last accessed
Jun. 26, 2021