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Can you summarize MSCO 75-4-205?
Collection of Items: Depositary and Collecting Banks. > Depositary bank holder of unindorsed item.
Short Summary
This legal document, as per the Mississippi Code 1972, governs the collection of items by depositary banks and collecting banks. According to the document, when a customer delivers an item to a depositary bank for collection, the depositary bank becomes a holder of the item at the time of receipt, regardless of whether the customer indorses the item. If the bank satisfies the other requirements of Section 75-3-302, it is considered a holder in due course. The depositary bank also warrants to collecting banks, payor banks, and the drawer that the amount of the item was paid to the customer or deposited to the customer’s account. The document provides various judicial decisions related to the application of this law. However, no specific exemptions or penalties are mentioned in the document.
Whom does it apply to?
Depositary banks, collecting banks, payor banks, and drawers
What does it govern?
Collection of Items: Depositary and Collecting Banks
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Mississippi