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Can you summarize IACO 554.4201?
UNIFORM COMMERCIAL CODE > Status of collecting bank as agent and provisional status of credits applicability of Article item endorsed pay any bank.
Short Summary
This legal document, governed by the Iowa Code’s Uniform Commercial Code, addresses the status of a collecting bank as an agent and the provisional status of credits. It establishes that unless a contrary intent is clearly stated, a collecting bank is considered an agent or subagent of the owner of an item, and any settlement given for the item is provisional. This applies regardless of the form of endorsement or lack thereof. The document also states that the ownership of an item and the rights to its proceeds are subject to the rights of a collecting bank, such as outstanding advances or rights of recoupment or setoff. Additionally, it specifies that after an item is endorsed with the words ‘pay any bank’ or similar, only a bank may acquire the rights of a holder until the item is returned to the customer or specially endorsed to a non-bank person by a bank. The provisions of this document apply even if a particular bank has purchased the item and is its owner. The document does not mention any specific exemptions or penalties.
Whom does it apply to?
Collecting banks, owners of items, and persons involved in presentment, payment, collection, or return of items
What does it govern?
Status of collecting bank as agent and provisional status of credits
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Iowa