If a customer delivers an item to a depositary bank for collection:
The depositary bank becomes a holder of the item at the time it receives the item forcollection 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 4-3-302, it is a holder in due course; and
The depositary bank warrants to collecting banks, the payor bank or other payor, andthe drawer that the amount of the item was paid to the customer or deposited to the customer's account.
Source: L. 94: Entire article amended with relocations, p. 887, § 2, effective January 1, 1995.