                                 CODE OF VIRGINIA

DEPOSITARY BANK HOLDER OF UNENDORSED ITEM (§ 8.4-205.1)

If a customer delivers an item to a depositary bank for collection:

1. the depositary bank becomes a holder of the item at the time it receives the
item for collection if the customer at the time of the delivery was a holder of
the item, whether or not the customer endorses the item, and, if the bank
satisfies the other requirements of &#xA7; 8.3A-302, it is a holder in due
course; and

2. the depositary bank 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&#8217;s account.

HISTORY: 1992, c. 693.