2006 Minnesota Statutes

336.4-201 STATUS OF COLLECTING BANK AS AGENT AND PROVISIONAL STATUS
OF CREDITS; APPLICABILITY OF ARTICLE; ITEM ENDORSED "PAY ANY BANK".
(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 respect to the item, is an agent
or subagent of the owner of the item and any settlement given for the item is provisional. This
provision applies regardless of the form of endorsement or lack of endorsement and even though
credit given for the item is subject to immediate withdrawal as of right or is in fact withdrawn; but
the continuance of ownership of an item by its owner and any rights of the owner to proceeds
of the item are subject to rights of a collecting bank, such as those resulting from outstanding
advances on the item and rights of recoupment or setoff. If an item is handled by banks for
purposes of presentment, payment, collection, or return, the relevant provisions of this article
apply even though action of the parties clearly establishes that a particular bank has purchased the
item and is the owner of it.
(b) After an item has been endorsed with the words "pay any bank" or the like, only a bank
may acquire the rights of a holder until the item has been:
(1) returned to the customer initiating collection; or
(2) specially endorsed by a bank to a person who is not a bank.
History: 1965 c 811 s 336.4-201; 1992 c 565 s 83