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Can you summarize NVRS 104.4201?
Uniform Commercial CodeOriginal Articles > Status of collecting bank as agent and provisional status of credits; item endorsed pay any bank.
Short Summary
This legal provision, part of the Nevada Revised Statutes under the Uniform Commercial CodeOriginal Articles, governs the status of a collecting bank as an agent and the provisional status of credits. It establishes that unless a contrary intent clearly appears, a collecting bank is considered an agent or subagent of the owner of the item, and any settlement given for the item is provisional. This applies regardless of the form of endorsement or lack of endorsement, and even if credit for the item is subject to immediate withdrawal or is already withdrawn. However, the ownership of the item and the owner’s rights to proceeds are subject to the rights of the collecting bank, such as outstanding advances on the item and rights of recoupment or setoff. The provision also states that if an item is handled by banks for presentment, payment, collection, or return, the relevant provisions of this article apply, even if a particular bank has purchased the item and is its owner. Additionally, it specifies that after an item has been 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 initiating collection or specially endorsed by a bank to a non-bank person.
Whom does it apply to?
Collecting banks, owners of items, customers initiating collection, banks acquiring rights of a holder
What does it govern?
Status of collecting bank as agent and provisional status of credits; item endorsed pay any bank.
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Nevada