§ 554.4201

554.4201 Status of collecting bank as agent and provisional status of credits — applicability of Article — item endorsed 'pay any bank'. 1. 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 agentor 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of endorsement andeven though credit given for the item is subject to immediate withdrawal as of right or is infact withdrawn; but the continuance of ownership of an item by its owner and any rights ofthe owner to proceeds of the item are subject to rights of a collecting bank, such as thoseresulting from outstanding advances on the item and rights of recoupment or setoff. If anitem is handled by banks for purposes of presentment, payment, collection, or return, therelevant provisions of this Article apply even though action of the parties clearly establishesthat a particular bank has purchased the item and is the owner of it. 2.

ment, collection, or return, therelevant provisions of this Article apply even though action of the parties clearly establishesthat a particular bank has purchased the item and is the owner of it. 2. 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: a. returned to the customer initiating collection; orb. specially endorsed by a bank to a person who is not a bank.[C66, 71, 73, 75, 77, 79, 81, §554.4201]94 Acts, ch 1167, §88, 122Referred to in §554.3206 Sat Dec 23 01:57:19 2023 Iowa Code 2024, Section 554.4201 (24, 0)