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Can you summarize NHRS 382-A:4-201?
UNIFORM COMMERCIAL CODE > Status of Collecting Bank as Agent and Provisional Status of Credits; Applicability of Article; Item Indorsed 'Pay Any Bank'.
Short Summary
This legal document, part of the New Hampshire Revised Statutes under the Uniform Commercial Code, addresses the status of collecting banks as agents and the provisional status of credits. It applies to collecting banks, owners of items, and banks involved in presentment, payment, collection, or return of items. The document establishes that unless a contrary intent is clearly stated, a collecting bank is considered an agent or sub-agent of the owner of an item, and any settlement given for the item is provisional. The ownership of an item and the rights of the owner to its proceeds are subject to the rights of the collecting bank, including outstanding advances on the item and rights of recoupment or setoff. Additionally, the document states that if an item is handled by banks for specific purposes, the provisions of this Article apply, even if a particular bank has purchased the item and is its owner. Furthermore, the document specifies that after an item has been indorsed 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 initiating collection or specially indorsed by a bank to a non-bank person.
Whom does it apply to?
Collecting banks, owners of items, and banks involved in presentment, payment, collection, or return of items
What does it govern?
Status of Collecting Bank as Agent and Provisional Status of Credits; Applicability of Article; Item Indorsed 'Pay Any Bank'
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
New Hampshire