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Can you summarize MNST 336.4-210?
UNIFORM COMMERCIAL CODE > SECURITY INTEREST OF COLLECTING BANK IN ITEMS, ACCOMPANYING DOCUMENTS, AND PROCEEDS.
Short Summary
This legal document, governed by the Minnesota Statutes under the Uniform Commercial Code, specifically section 336.4-210, addresses the security interest of a collecting bank in items, accompanying documents, and proceeds. It outlines the circumstances under which a collecting bank has a security interest, including when credit has been withdrawn or applied for an item deposited in an account, when credit has been given for an item available for withdrawal, or when an advance has been made on or against the item. The document also states that if credit given for multiple items is withdrawn or applied in part, the security interest remains on all the items and their accompanying documents or proceeds. It further explains that when a collecting bank receives final settlement for an item, it realizes its security interest in the item, accompanying documents, and proceeds. The security interest remains as long as the bank does not receive final settlement, give up possession of the item or possession/control of the accompanying documents for purposes other than collection. The document clarifies that no security agreement or filing is required to make the security interest enforceable or perfected, and that the security interest takes priority over conflicting perfected security interests. No specific exemptions or penalties are mentioned in this document.
Whom does it apply to?
Collecting banks
What does it govern?
Security interest of collecting bank in items, accompanying documents, and proceeds
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota