(810 ILCS 5/4-201) (from Ch. 26, par. 4-201)
Sec. 4-201.
Status of collecting bank as agent and provisional status of
credits; applicability of Article; item indorsed "pay any bank".
(a) 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 agent or sub-agent 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immediate withdrawal as of right or is in fact withdrawn; but the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 purpose 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.
(b) 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:
(1) returned to the customer initiating collection; or
(2) specially indorsed by a bank to a person who is |