La. Stat. tit. 10 § 4-205

Current with changes from the 2024 3rd Extraordinary Session

Section 10:4-205 - Depositary bank holder of unindorsed item

If a customer delivers an item to a depositary bank for collection:

(1) the depositary bank becomes a holder of the item at the time it receives the item for collection if the customer at the time of delivery was a holder of the item, whether or not the customer indorses the item, and, if the bank satisfies the other requirements of R.S. 10:3-302, it is a holder in due course; and

(2) the depositary bank warrants to collecting banks, the payor bank or other payor, and the drawer that the amount of the item was paid to the customer or deposited to the customer's account.

La. R.S. § 10:4-205

Acts 1992, No. 1133, §4, eff. 7/1/1993; Acts 1993, No. 948, §10, eff. 1/1/1994.