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Uniform Commercial Code > BANK DEPOSITS AND COLLECTIONS
Short Summary
The provided legal document content pertains to the ‘Uniform Commercial Code - Bank Deposits and Collections’ under the Colorado Revised Statutes. It governs the rules and regulations related to bank deposits and collections, payor banks, collecting banks, customers, and documentary drafts. The document emphasizes the need for a uniform statement of rules to accommodate the changing needs and conditions of the bank collection process. It highlights the importance of automation and truncation in the check collection process to increase efficiency and reduce costs. The document establishes that a collecting bank is considered an agent or sub-agent of the owner of the item, and any settlement given for the item is provisional unless a contrary intent is clearly stated. It clarifies the ownership of an item and the rights of the owner to proceeds of the item, subject to the rights of the collecting bank. The document outlines the responsibilities of collecting banks in the collection process, including exercising ordinary care, sending notice of dishonor or nonpayment, settling for items, and notifying their transferor of any loss or delay in transit. It also specifies the time limits for action and the definition of when an item is considered ‘returned’. The document further governs the relationship between a payor bank and its customer, including the authorization of payments, liability for overdrafts, charging of postdated checks, and responsibility in cases of forged signatures or endorsements. It addresses the bank’s authority to pay or collect items, the customer’s right to stop payment or close the account, and the duties and responsibilities of both the bank and the customer regarding unauthorized signatures or alterations on items. The document also covers the presentment and handling of documentary drafts by banks, including the duty to present or send the draft, refusal to pay or accept the draft due to non-arrival of goods, and the responsibilities of presenting banks. Overall, these documents provide guidelines and regulations for banks and their customers regarding various aspects of their relationship and transactions.
Whom does it apply to?
Banks, depositary banks, collecting banks, payor banks, customers
What does it govern?
Bank deposits and collections, payor banks, collecting banks, customers, documentary drafts
What are exemptions?
No specific exemptions are mentioned in these documents.
What are the Penalties?
No specific penalties are mentioned in these documents.
Jurisdiction
Colorado