2003 Minnesota Statutes

  336.4-210 Security interest of collecting bank in items, 
  accompanying documents, and proceeds. 

    (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 account, to the 
 extent to which credit given for the item has been withdrawn or 
 applied; 

    (2) in case of an item for which it has given credit 
 available for withdrawal as of right, to the extent of the 
 credit given, whether or not the credit is drawn upon or there 
 is a right of chargeback; or 

    (3) if it makes an advance on or against the item. 

    (b) If credit given for several items received at one time 
 or pursuant to a single agreement is withdrawn or applied in 
 part, the security interest remains upon all the items, any 
 accompanying documents or the proceeds of either.  For the 
 purpose of this section, credits first given are first withdrawn.

    (c) Receipt by a collecting bank of a final settlement for 
 an item is a realization on its security interest in the item, 
 accompanying documents, and proceeds.  So long as the bank does 
 not receive final settlement for the item or give up possession 
 of the item or accompanying documents for purposes other than 
 collection, the security interest continues to that extent and 
 is subject to article 9, but: 

    (1) no security agreement is necessary to make the security 
 interest enforceable (section 336.9-203(b)(3)(A)); 

    (2) no filing is required to perfect the security interest; 
 and 

    (3) the security interest has priority over conflicting 
 perfected security interests in the item, accompanying 
 documents, or proceeds. 

    HIST: 1965 c 811 s 336.4-208; 1992 c 565 s 92; 2000 c 399 art 
 2 s 12