Tex. Bus. & Com. Code § 4.205 · Subchapter B. COLLECTION OF ITEMS: DEPOSITARY AND COLLECTING BANKS
DEPOSITORY BANK HOLDER OF UNINDORSED ITEM.
Text — Current through the 89th 2nd Called Legislative Session, 2025
If a customer delivers an item to a depositary bank for collection, the depositary bank:
(1) 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 Section 3.302, the bank is a holder in due course; and
(2) 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.
Notes and commentary — not statutory text
History
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1, 1967. Amended by Acts 1995, 74th Leg., ch. 921, Sec. 4, eff. Jan. 1, 1996.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/BC/htm/BC.4.htm
- Text hash
- sha256 54bd06e7daf21f3b74b5b4770bedfb84d2838b3f32f7e95b2a06f0871ce1d9f0
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
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Business & Commerce Code
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.