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Wis. Stat. § 404.205

Depositary bank holder of unendorsed item

Applied in 1 court decision — leading case Schmitz v. Firstar Bank Milwaukee (2003)

Most recently applied in Schmitz v. Firstar Bank Milwaukee (July 2003)

1995 a. 449

If a customer delivers an item to a depositary bank for collection, all of the following apply:

(1) The depositary bank becomes a holder of the item at the time that 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 endorses the item, and, if the bank satisfies the other requirements of s. 403.302, it is a holder in due course.

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

Official source: Wisconsin State Legislature. Reproduced from public-domain Wisconsin statutes; confirm against the official source for the current text. Not legal advice.