DIVISION 4. BANK DEPOSITS AND COLLECTIONS [4101. - 4504.]

Division 4 enacted by Stats. 1963, Ch. 819.

§§ 4101–4504 · 41 sections

1. CHAPTER 1. General Provisions and Definitions §§ 4101–4111 · 11 sections

   • § 4101 This division may be cited as Uniform Commercial Code—Bank Deposits and Collections.
   • § 4102 (a) To the extent that items within this division are also within Divisions 3 (commencing with Section 3101) and 8 (commencing with Section 8101), they are…
   • § 4103 (a) The effect of the provisions of this division may be varied by agreement, but the parties to the agreement cannot disclaim a bank’s responsibility for its…
   • § 4104 (a) In this division unless the context otherwise requires: (1) “Account” means any deposit or credit account with a bank, including a demand, time, savings,…
   • § 4105 In this division: (1) “Bank” means a person engaged in the business of banking, including a savings bank, savings and loan association, credit union, or trust…
   • § 4106 (a) If an item states that it is “payable through” a bank identified in the item, (1) the item designates the bank as a collecting bank and does not by itself…
   • § 4107 A branch or separate office of a bank is a separate bank for the purpose of computing the time within which and determining the place at or to which action may…
   • § 4108 (a) For the purpose of allowing time to process items, prove balances, and make the necessary entries on its books to determine its position for the day, a…
   • § 4109 (a) Unless otherwise instructed, a collecting bank in a good faith effort to secure payment of a specific item drawn on a payor other than a bank, and with or…
   • § 4110 (a) “Agreement for electronic presentment” means an agreement, clearing house rule, or Federal Reserve regulation or operating circular, providing that…
   • § 4111 An action to enforce an obligation, duty, or right arising under this division shall be commenced within three years after the cause of action accrues.
2. CHAPTER 2. Collection of Items: Depositary and Collecting Banks §§ 4201–4216 · 16 sections

   • § 4201 (a) Unless a contrary intent clearly appears and before the time that a settlement given by a collecting bank for an item is or becomes final, the bank, with…
   • § 4202 (a) A collecting bank shall exercise ordinary care in all of the following: (1) Presenting an item or sending it for presentment. (2) Sending notice of…
   • § 4203 Subject to Division 3 (commencing with Section 3101) concerning conversion of instruments (Section 3420) and restrictive indorsements (Section 3206), only a…
   • § 4204 (a) A collecting bank shall send items by reasonably prompt method, taking into consideration relevant instructions, the nature of the item, the number of…
   • § 4205 If a customer delivers an item to a depositary bank for collection both of the following apply: (a) The depositary bank becomes a holder of the item at the…
   • § 4206 Any agreed method that identifies the transferor bank is sufficient for the item’s further transfer to another bank.
   • § 4207 (a) A customer or collecting bank that transfers an item and receives a settlement or other consideration warrants to the transferee and to any subsequent…
   • § 4208 (a) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, (i) the person obtaining payment or…
   • § 4209 (a) A person who encodes information on or with respect to an item after issue warrants to any subsequent collecting bank and to the payor bank or other payor…
   • § 4210 (a) A collecting bank has a security interest in an item and any accompanying documents or the proceeds of either: (1) In case of an item deposited in an…
   • § 4211 For purposes of determining its status as a holder in due course, a bank has given value to the extent it has a security interest in an item, if the bank…
   • § 4212 (a) Unless otherwise instructed, a collecting bank may present an item not payable by, through, or at a bank by sending to the party to accept or pay a written…
   • § 4213 (a) With respect to settlement by a bank, the medium and time of settlement may be prescribed by Federal Reserve regulations or circulars, clearing house…
   • § 4214 (a) If a collecting bank has made provisional settlement with its customer for an item and fails by reason of dishonor, suspension of payments by a bank, or…
   • § 4215 (a) An item is finally paid by a payor bank when the bank has first done any of the following: (1) Paid the item in cash. (2) Settled for the item without…
   • § 4216 (a) If an item is in or comes into the possession of a payor or collecting bank that suspends payment and the item has not been finally paid, the item shall be…
3. CHAPTER 3. Collection of Items: Payor Banks §§ 4301–4303 · 3 sections

   • § 4301 (a) If a payor bank settles for a demand item other than a documentary draft presented otherwise than for immediate payment over the counter before midnight of…
   • § 4302 (a) If an item is presented to and received by a payor bank, the bank is accountable for the amount of either: (1) A demand item, other than a documentary…
   • § 4303 (a) Any knowledge, notice, or stop-payment order received by, legal process served upon, or setoff exercised by a payor bank comes too late to terminate,…
4. CHAPTER 4. Relationship Between Payor Bank and Its Customer §§ 4401–4407 · 7 sections

   • § 4401 (a) A bank may charge against the account of a customer an item that is properly payable from that account even though the charge creates an overdraft. An item…
   • § 4402 (a) Except as otherwise provided in this division, a payor bank wrongfully dishonors an item if it dishonors an item that is properly payable, but a bank may…
   • § 4403 (a) A customer or any person authorized to draw on the account if there is more than one person may stop payment of any item drawn on the customer’s account or…
   • § 4404 A bank is under no obligation to a customer having a checking account to pay a check, other than a certified check, which is presented more than six months…
   • § 4405 (a) A payor or collecting bank’s authority to accept, pay, or collect an item or to account for proceeds of its collection, if otherwise effective, is not…
   • § 4406 (a) A bank that sends or makes available to a customer a statement of account showing payment of items for the account shall either return or make available to…
   • § 4407 If a payor bank has paid an item over the order of the drawer or maker to stop payment, or after an account has been closed, or otherwise under circumstances…
5. CHAPTER 5. Collection of Documentary Drafts §§ 4501–4504 · 4 sections

   • § 4501 A bank that takes a documentary draft for collection shall present or send the draft and accompanying documents for presentment and, upon learning that the…
   • § 4502 If a draft or the relevant instructions require presentment “on arrival,” “when goods arrive” or the like, the collecting bank need not present until in its…
   • § 4503 Unless otherwise instructed and except as provided in Division 5 (commencing with Section 5101), a bank presenting a documentary draft: (a) Shall deliver the…
   • § 4504 (a) A presenting bank that, following the dishonor of a documentary draft, has seasonably requested instructions but does not receive them within a reasonable…