There is a newer version of the Kentucky Revised Statutes
2009 Kentucky Revised Statutes
Article 4 Bank Deposits and Collections
355.4.201 Status of collecting bank as agent and provisional status of credits -- Applicability of article -- Item indorsed "pay any bank."
Download pdfitem, is an agent or subagent of the owner of the item and any settlement given for
the item is provisional. This provision applies regardless of the form of indorsement
or lack of indorsement and even though credit given for the item is subject to
immediate withdrawal as of right or is in fact withdrawn; but the continuance of
ownership of an item by its owner and any rights of the owner to proceeds of the
item are subject to rights of a collecting bank, such as those resulting from
outstanding advances on the item and rights of recoupment or setoff. If an item is
handled by banks for the purposes of presentment, payment, collection, or return,
the relevant provisions of this article apply even though action of the parties clearly
establishes that a particular bank has purchased the item and is the owner of it. (2) After an item has been indorsed 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; or
(b) Specially indorsed by a bank to a person who is not a bank. Effective: January 1, 1997
History: Amended 1996 Ky. Acts ch. 130, sec. 83, effective January 1, 1997. -- Created 1958 Ky. Acts ch. 77, sec. 4-201, effective July 1, 1960.
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