reglab/statecodes huggingface dataset:
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 3.1. Negotiable Instruments › 26-1-3.1-501. Presentment

Sec. 501. (a) "Presentment" means a demand made by or on behalf of a person entitled to enforce an instrument:
(1) to pay the instrument made to the drawee or a party obliged to pay the instrument or, in the case of a note or accepted draft payable at a bank, to the bank; or
(2) to accept a draft made to the drawee.
(b) The following rules are subject to IC 26-1-4, agreement of the parties, and clearing-house rules and the like:
(1) Presentment may be made at the place of payment of the instrument and must be made at the place of payment if the instrument is payable at a bank in the United States; may be made by any commercially reasonable means, including an oral, written, or electronic communication; is effective when the demand for payment or acceptance is received by the person to whom presentment is made; and is effective if made to any one (1) of two (2) or more makers, acceptors, drawees, or other payors.
(2) Upon demand of the person to whom presentment is made, the person making presentment must:
(A) exhibit the instrument;
(B) give reasonable identification and, if presentment is made on behalf of another person, reasonable evidence of authority to do so; and
(C) sign a receipt on the instrument for any payment made or surrender the instrument if full payment is made.
(3) Without dishonoring the instrument, the party to whom presentment is made may:
(A) return the instrument for lack of a necessary endorsement; or
(B) refuse payment or acceptance for failure of the presentment to comply with the terms of the instrument, an agreement of the parties, or other applicable law or rule.
(4) The party to whom presentment is made may treat presentment as occurring on the next business day after the day of presentment if the party to whom presentment is made has established a cut-off hour not earlier than 2 p.m. for the receipt and processing of instruments presented for payment or acceptance and presentment is made after the cut-off hour.
As added by P.L.222-1993, SEC.5.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 3.1. Negotiable Instruments › 26-1-3.1-502.5. Surcharge After Dishonor

Sec. 502.5. (a) Except as provided in subsection (b), a person to whom a check, a draft, an order, or like instrument is tendered may, if the instrument is dishonored or returned unpaid for any reason, charge and collect from the maker or drawer, or the person for whose benefit the instrument was given, an amount not to exceed twenty dollars ($20) plus an amount equal to the actual charge by the depository institution for each returned or dishonored instrument. The charge shall not be considered an interest charge, a finance charge, a time price differential, or any charge of a similar nature.
(b) To the extent applicable to a federally chartered bank, if a check is dishonored, a bank, trust, banc, banco, or bancorp may not charge any party other than the maker or drawer of the check a fee in connection with the dishonoring of the check.
As added by P.L.248-1995, SEC.3. Amended by P.L.213-2007, SEC.32.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 3.1. Negotiable Instruments › 26-1-3.1-503. Notice of Dishonor

Sec. 503. (a) The obligation of an endorser stated in IC 26-1-3.1-415(a) and the obligation of a drawer stated in IC 26-1-3.1-414(d) may not be enforced unless:
(1) the endorser or drawer is given notice of dishonor of the instrument complying with this section; or
(2) notice of dishonor is excused under IC 26-1-3.1-504(b).
(b) Notice of dishonor may be given by any person; may be given by any commercially reasonable means, including an oral, written, or electronic communication; and is sufficient if it reasonably identifies the instrument and indicates that the instrument has been dishonored or has not been paid or accepted. Return of an instrument given to a bank for collection is sufficient notice of dishonor.
(c) Subject to IC 26-1-3.1-504(c), with respect to an instrument taken for collection by a collecting bank, notice of dishonor must be given:
(1) by the bank before midnight of the next banking day following the banking day on which the bank receives notice of dishonor of the instrument; or
(2) by any other person within thirty (30) days following the day on which the person receives notice of dishonor.
With respect to any other instrument, notice of dishonor must be given within thirty (30) days following the day on which dishonor occurs.
As added by P.L.222-1993, SEC.5.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 3.1. Negotiable Instruments › 26-1-3.1-504. Excused Presentment and Notice of Dishonor

Sec. 504. (a) Presentment for payment or acceptance of an instrument is excused if:
(1) the person entitled to present the instrument cannot with reasonable diligence make presentment;
(2) the maker or acceptor has repudiated an obligation to pay the instrument or is dead or in insolvency proceedings;
(3) by the terms of the instrument presentment is not necessary to enforce the obligation of endorsers or the drawer;
(4) the drawer or endorser whose obligation is being enforced has waived presentment or otherwise has no reason to expect or right to require that the instrument be paid or accepted; or
(5) the drawer instructed the drawee not to pay or accept the draft or the drawee was not obligated to the drawer to pay the draft.
(b) Notice of dishonor is excused if:
(1) by the terms of the instrument notice of dishonor is not necessary to enforce the obligation of a party to pay the instrument; or
(2) the party whose obligation is being enforced waived notice of dishonor.
A waiver of presentment is also a waiver of notice of dishonor.
(c) Delay in giving notice of dishonor is excused if the delay was caused by circumstances beyond the control of the person giving the notice and the person giving the notice exercised reasonable diligence after the cause of the delay ceased to operate.
As added by P.L.222-1993, SEC.5.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 3.1. Negotiable Instruments › 26-1-3.1-505. Evidence of Dishonor

Sec. 505. (a) The following are admissible as evidence and create a presumption of dishonor and of any notice of dishonor stated:
(1) A document regular in form as provided in subsection (b) which purports to be a protest.
(2) A purported stamp or writing of the drawee, payor bank, or presenting bank on or accompanying the instrument stating that acceptance or payment has been refused unless reasons for the refusal are stated and the reasons are not consistent with dishonor.
(3) A book or record of the drawee, payor bank, or collecting bank, kept in the usual course of business which shows dishonor, even if there is no evidence of who made the entry.
(b) A protest is a certificate of dishonor made by a United States consul or vice consul, or a notary public or other person authorized to administer oaths by the law of the place where dishonor occurs. It may be made upon information satisfactory to that person. The protest must identify the instrument and certify either that presentment has been made or, if not made, the reason why it was not made, and that the instrument has been dishonored by nonacceptance or nonpayment. The protest may also certify that notice of dishonor has been given to some or all parties.
As added by P.L.222-1993, SEC.5.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 3.1. Negotiable Instruments › 26-1-3.1-601. Discharge and Effect of Discharge

Sec. 601. (a) The obligation of a party to pay the instrument is discharged as stated in IC 26-1-3.1 or by an act or agreement with the party which would discharge an obligation to pay money under a simple contract.
(b) Discharge of the obligation of a party is not effective against a person acquiring rights of a holder in due course of the instrument without notice of the discharge.
As added by P.L.222-1993, SEC.5.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 3.1. Negotiable Instruments › 26-1-3.1-602. Payment

Sec. 602. (a) Subject to subsection (e), an instrument is paid to the extent payment is made:
(1) by or on behalf of a party obliged to pay the instrument; and
(2) to a person entitled to enforce the instrument.
(b) Subject to subsection (e), a note is paid to the extent payment is made by or on behalf of a party obliged to pay the note to a person that formerly was entitled to enforce the note only if at the time of the payment the party obliged to pay has not received adequate notification that the note has been transferred and that payment is to be made to the transferee. A notification is adequate only if it is signed by the transferor or the transferee, reasonably identifies the transferred note, and provides an address at which payments subsequently are to be made. Upon request, a transferee shall seasonably furnish reasonable proof that the note has been transferred. Unless the transferee complies with the request, a payment to the person that formerly was entitled to enforce the note is effective for purposes of subsection (c) even if the party obliged to pay the note has received a notification under this subsection.
(c) Subject to subsection (e), to the extent a payment is made under subsections (a) and (b), the obligation of the party obliged to pay the instrument is discharged even though payment is made with knowledge of a claim to the instrument under IC 26-1-3.1-306 by another person.
(d) Subject to subsection (e), a transferee, or any party that has acquired rights in the instrument directly or indirectly from a transferee, including any such party that has rights as a holder in due course, is considered to have notice of any payment that is made under subsection (b) after the date that the note is transferred to the transferee but before the party obliged to pay the note receives adequate notification of the transfer.
(e) The obligation of a party to pay the instrument is not discharged under subsections (a) through (d) if:
(1) a claim to the instrument under IC 26-1-3.1-306 is enforceable against the party receiving payment and (i) payment is made with knowledge by the payor that payment is prohibited by injunction or similar process of a court of competent jurisdiction, or (ii) in the case of an instrument other than a cashier's check, teller's check, or certified check, the party making payment accepted, from the person having a claim to the instrument, indemnity against loss resulting from refusal to pay the person entitled to enforce the instrument; or
(2) the person making payment knows that the instrument is a stolen instrument and pays a person it knows is in wrongful possession of the instrument.
(f) As used in this section, "signed", with respect to a record that is not a writing, includes the attachment to or logical association with the record of an electronic symbol, sound, or process with the present intent to adopt or accept the record.
As added by P.L.222-1993, SEC.5. Amended by P.L.135-2009, SEC.12.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 3.1. Negotiable Instruments › 26-1-3.1-603. Tender of Payment

Sec. 603. (a) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect of tender is governed by principles of law applicable to tender of payment under a simple contract.
(b) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument and the tender is refused, there is discharge, to the extent of the amount of the tender, of the obligation of an endorser or accommodation party having a right of recourse with respect to the obligation to which the tender relates.
(c) If tender of payment of an amount due on an instrument is made to a person entitled to enforce the instrument, the obligation of the obligor to pay interest after the due date on the amount tendered is discharged. If presentment is required with respect to an instrument and the obligor is able and ready to pay on the due date at every place of payment stated in the instrument, the obligor is considered to have made tender of payment on the due date to the person entitled to enforce the instrument.
As added by P.L.222-1993, SEC.5.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 3.1. Negotiable Instruments › 26-1-3.1-604. Discharge by Cancellation or Renunciation

Sec. 604. (a) A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument:
(1) by an intentional voluntary act, such as surrender of the instrument to the party, destruction, mutilation, or cancellation of the instrument, cancellation or striking out of the party's signature, or the addition of words to the instrument indicating discharge; or
(2) by agreeing not to sue or otherwise renouncing rights against the party by a signed record.
The obligation of a party to pay a check is not discharged solely by destruction of the check in connection with a process in which information is extracted from the check and an image of the check is made and, subsequently, the information and image are transmitted for payment.
(b) Cancellation or striking out of an endorsement under subsection (a) does not affect the status and rights of a party derived from the endorsement.
As added by P.L.222-1993, SEC.5. Amended by P.L.135-2009, SEC.13; P.L.199-2023, SEC.21.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-101. Short Title

Sec. 101. IC 26-1-4 may be cited as Uniform Commercial Code ─ Bank Deposits and Collections.
Formerly: Acts 1963, c.317, s.4-101. As amended by P.L.152-1986, SEC.205; P.L.222-1993, SEC.6.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-102. Applicability

Sec. 102. (a) To the extent that items within IC 26-1-4 are also within IC 26-1-3.1 and IC 26-1-8.1, they are subject to IC 26-1-3.1 and IC 26-1-8.1. If there is conflict, IC 26-1-4 governs IC 26-1-3.1, but IC 26-1-8.1 governs IC 26-1-4.
(b) The liability of a bank for action or nonaction with respect to an item handled by it for purposes of presentment, payment, or collection is governed by the law of the place where the bank is located. In the case of action or nonaction by or at a branch or separate office of a bank, its liability is governed by the law of the place where the branch or separate office is located.
Formerly: Acts 1963, c.317, s.4-102. As amended by P.L.152-1986, SEC.206; P.L.222-1993, SEC.7; P.L.247-1995, SEC.5.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-102.5. Application of Bank Provisions to Supervised Financial Organizations

Sec. 102.5. (a) As used in this section, "supervised financial organization" means a person, other than an insurance company or other organization primarily engaged in an insurance business, that is:
(1) organized, chartered, or holding an authorization certificate under the laws of a state or of the United States that authorizes the person to make loans and to receive deposits, including a savings, share, certificate, or deposit account; and
(2) subject to supervision by an official or agency of a state or of the United States.
(b) The provisions of IC 26-1-4 which apply to a bank apply equally to any supervised financial organization which is authorized by state or federal law to permit persons to make withdrawals or payments from accounts by negotiable instruments.
As added by Acts 1981, P.L.231, SEC.2. Amended by P.L.152-1986, SEC.207; P.L.35-2010, SEC.95.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-103. Variation by Agreement; Measure of Damages; Action Constituting Ordinary Care

Sec. 103. (a) The effect of the provisions of IC 26-1-4 may be varied by agreement, but the parties to the agreement cannot disclaim a bank's responsibility for its lack of good faith or failure to exercise ordinary care or limit the measure of damages for the lack or failure. However, the parties may determine by agreement the standards by which the bank's responsibility is to be measured if those standards are not manifestly unreasonable.
(b) Federal reserve regulations and operating circulars, clearing-house rules, and the like have the effect of agreements under subsection (a), whether or not specifically assented to by all parties interested in items handled.
(c) Action or nonaction approved by IC 26-1-4 or pursuant to federal reserve regulations or operating circulars is the exercise of ordinary care and, in the absence of special instructions, action or nonaction consistent with clearing-house rules and the like or with a general banking usage not disapproved by IC 26-1-4 is prima facie the exercise of ordinary care.
(d) The specification or approval of certain procedures by IC 26-1-4 is not disapproval of other procedures that may be reasonable under the circumstances.
(e) The measure of damages for failure to exercise ordinary care in handling an item is the amount of the item reduced by an amount that could not have been realized by the exercise of ordinary care. If there is also bad faith it includes any other damages the party suffered as a proximate consequence.
Formerly: Acts 1963, c.317, s.4-103. As amended by P.L.152-1986, SEC.208; P.L.222-1993, SEC.8.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-105. "Bank"; "Depositary Bank"; "Payor Bank"; "Intermediary Bank"; "Collecting Bank"; "Presenting Bank"

Sec. 105. In IC 26-1-4:
(1) "Bank" means a person engaged in the business of banking, including a savings bank, savings association, credit union, or trust company.
(2) "Depositary bank" means the first bank to take an item even though it is also the payor bank, unless the item is presented for immediate payment over the counter.
(3) "Payor bank" means a bank that is the drawee of a draft.
(4) "Intermediary bank" means a bank to which an item is transferred in course of collection except the depositary or payor bank.
(5) "Collecting bank" means a bank handling an item for collection except the payor bank.
(6) "Presenting bank" means a bank presenting an item except a payor bank.
Formerly: Acts 1963, c.317, s.4-105. As amended by P.L.152-1986, SEC.210; P.L.222-1993, SEC.10; P.L.79-1998, SEC.28.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-106. Payable Through or Payable at Bank; Collecting Bank

Sec. 106. (a) If an item states that it is "payable through" a bank identified in the item:
(1) the item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item; and
(2) the item may be presented for payment only by or through the bank.
(b) If an item states that it is "payable at" a bank identified in the item:
(1) the item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item; and
(2) the item may be presented for payment only by or through the bank.
(c) If a draft names a nonbank drawee and it is unclear whether a bank named in the draft is a co-drawee or a collecting bank, the bank is a collecting bank.
Formerly: Acts 1963, c.317, s.4-106. As amended by P.L.152-1986, SEC.211; P.L.222-1993, SEC.11.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-107. Separate Office of Bank

Sec. 107. A branch or separate office of a bank is a separate bank for the purpose of computing the time within which and determining the place at or to which action may be taken or notices or orders must be given under IC 26-1-4 and under IC 26-1-3.1.
Formerly: Acts 1963, c.317, s.4-107. As amended by Acts 1977, P.L.278, SEC.1; P.L.263-1987, SEC.2; P.L.222-1993, SEC.12.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-108. Time of Receipt of Items

Sec. 108. (a) For the purpose of allowing time to process items, prove balances, and make the necessary entries on its books to determine its position for the day, a bank may fix an afternoon hour of 2:00 p.m. or later as a cutoff hour for the handling of money and items and the making of entries on its books.
(b) An item or deposit of money received on any day after a cutoff hour so fixed or after the close of the banking day may be treated as being received at the opening of the next banking day.
Formerly: Acts 1963, c.317, s.4-108. As amended by P.L.152-1986, SEC.212; P.L.222-1993, SEC.13.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-109. Delays

Sec. 109. (a) Unless otherwise instructed, a collecting bank in a good faith effort to secure payment of a specific item drawn on a payor other than a bank, and with or without the approval of any person involved, may waive, modify, or extend time limits imposed or permitted by IC 26-1 for a period not exceeding two (2) additional banking days without discharge of drawers or endorsers or liability to its transferor or a prior party.
(b) Delay by a collecting bank or payor bank beyond time limits prescribed or permitted by IC 26-1 or by instructions is excused if:
(1) the delay is caused by interruption of communication or computer facilities, suspension of payments by another bank, war, emergency conditions, failure of equipment, or other circumstances beyond the control of the bank; and
(2) the bank exercises such diligence as the circumstances require.
Formerly: Acts 1963, c.317, s.4-109. As amended by P.L.222-1993, SEC.14.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-110. Electronic Presentment

Sec. 110. (a) "Agreement for electronic presentment" means an agreement, clearing-house rule, or Federal Reserve regulation or operating circular, providing that presentment of an item may be made by transmission of an image of an item or information describing the item ("presentment notice") rather than delivery of the item itself. The agreement may provide for procedures governing retention, presentment, payment, dishonor, and other matters concerning items subject to the agreement.
(b) Presentment of an item under an agreement for presentment is made when the presentment notice is received.
(c) If presentment is made by presentment notice, a reference to "item" or "check" in IC 26-1-4 means the presentment notice unless the context otherwise indicates.
As added by P.L.222-1993, SEC.15.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-111. Statute of Limitations

Sec. 111. An action to enforce an obligation, duty, or right arising under IC 26-1-4 must be commenced within three (3) years after the cause of action accrues.
As added by P.L.222-1993, SEC.16.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-201. Status of Collecting Banks as Agent and Provisional Status of Credits; Applicability of Chapter; Item Endorsed "Pay Any Bank"

Sec. 201. (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 subagent of the owner of the item, and any settlement given for the item is provisional. This provision applies regardless of the form of endorsement or lack of endorsement 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 purposes of presentment, payment, collection, or return, the relevant provisions of IC 26-1-4 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 endorsed 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 endorsed by a bank to a person who is not a bank.
Formerly: Acts 1963, c.317, s.4-201. As amended by P.L.152-1986, SEC.213; P.L.222-1993, SEC.17.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-202. Responsibility for Collection or Return; When Action Timely

Sec. 202. (a) A collecting bank must exercise ordinary care in:
(1) presenting an item or sending it for presentment;
(2) sending notice of dishonor or nonpayment or returning an item other than a documentary draft to the bank's transferor after learning that the item has not been paid or accepted, as the case may be;
(3) settling for an item when the bank receives final settlement; and
(4) notifying its transferor of any loss or delay in transit within a reasonable time after discovery thereof.
(b) A collecting bank exercises ordinary care under subsection (a) by taking proper action before its midnight deadline following receipt of an item, notice, or settlement. Taking proper action within a reasonably longer time may constitute the exercise of ordinary care, but the bank has the burden of establishing timeliness.
(c) Subject to subsection (a)(1), a bank is not liable for the insolvency, neglect, misconduct, mistake, or default of another bank or person or for loss or destruction of an item in the possession of others or in transit.
Formerly: Acts 1963, c.317, s.4-202. As amended by P.L.152-1986, SEC.214; P.L.222-1993, SEC.18.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-203. Effect of Instructions

Sec. 203. Subject to of IC 26-1-3.1-420 concerning conversion of instruments and the provisions of both IC 26-1-3.1 and IC 26-1-4 concerning restrictive endorsements (IC 26-1-3.1-206), only a collecting bank's transferor can give instructions that affect the bank or constitute notice to it, and a collecting bank is not liable to prior parties for any action taken pursuant to the instructions or in accordance with any agreement with its transferor.
Formerly: Acts 1963, c.317, s.4-203. As amended by P.L.152-1986, SEC.215; P.L.222-1993, SEC.19.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-204. Methods of Sending and Presenting; Sending Directly to Payor Bank

Sec. 204. (a) A collecting bank shall send items by reasonably prompt method, taking into consideration relevant instructions, the nature of the item, the number of those items on hand, the cost of collection involved, and the method generally used by it or others to present those items.
(b) A collecting bank may send:
(1) an item directly to the payor bank;
(2) an item to a nonbank payor if authorized by its transferor; and
(3) an item other than documentary drafts to a nonbank payor, if authorized by Federal Reserve regulation or operating circular, clearing-house rule, or the like.
(c) Presentment may be made by a presenting bank at a place where the payor bank or other payor has requested that presentment be made.
Formerly: Acts 1963, c.317, s.4-204. As amended by P.L.222-1993, SEC.20.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-205. Depositary Bank Holder of Unendorsed Items

Sec. 205. 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 delivery was a holder of the item, whether or not the customer endorses the item, and, if the bank satisfies the other requirements of IC 26-1-3.1-302, 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's account.
Formerly: Acts 1963, c.317, s.4-205. As amended by P.L.222-1993, SEC.21.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-206. Transfer Between Banks

Sec. 206. Any agreed method that identifies the transferor bank is sufficient for the item's further transfer to another bank.
Formerly: Acts 1963, c.317, s.4-206. As amended by P.L.222-1993, SEC.22.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-207. Transfer Warranties

Sec. 207. (a) A customer or collecting bank that transfers an item and receives a settlement or other consideration warrants to the transferee and to any subsequent collecting bank that:
(1) the warrantor is a person entitled to enforce the item;
(2) all signatures on the item are authentic and authorized;
(3) the item has not been altered;
(4) the item is not subject to a defense or claim in recoupment (IC 26-1-3.1-305(a)) of any party that can be asserted against the warrantor;
(5) the warrantor has no knowledge of any insolvency proceeding commenced with respect to the maker or acceptor or, in the case of an unaccepted draft, the drawer; and
(6) with respect to a remotely-created consumer item, the person on whose account the item is drawn authorized the issuance of the item in the amount for which the item is drawn.
(b) If an item is dishonored, a customer or collecting bank transferring the item and receiving settlement or other consideration is obliged to pay the amount due on the item:
(1) according to the terms of the item at the time it was transferred; or
(2) if the transfer was of an incomplete item, according to its terms when completed as stated in IC 26-1-3.1-115 and IC 26-1-3.1-407.
The obligation of a transferor is owed to the transferee and to any subsequent collecting bank that takes the item in good faith. A transferor cannot disclaim its obligation under this subsection by an endorsement stating that it is made "without recourse" or otherwise disclaiming liability.
(c) A person to whom the warranties under subsection (a) are made and who took the item in good faith may recover from the warrantor as damages for breach of warranty an amount equal to the loss suffered as a result of the breach, but not more than the amount of the item plus expenses and loss of interest incurred as a result of the breach.
(d) The warranties stated in subsection (a) cannot be disclaimed with respect to checks. Unless notice of a claim for breach of warranty is given to the warrantor within thirty (30) days after the claimant has reason to know of the breach and the identity of the warrantor, the warrantor is discharged to the extent of any loss caused by the delay in giving notice of the claim.
(e) A cause of action for breach of warranty under this section accrues when the claimant has reason to know of the breach.
Formerly: Acts 1963, c.317, s.4-207. As amended by P.L.222-1993, SEC.23; P.L.135-2009, SEC.16.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-209. Encoding and Retention Warranties

Sec. 209. (a) A person who encodes information on or with respect to an item after issue warrants to any subsequent collecting bank and to the payor bank or other payor that the information is correctly encoded. If the customer of a depositary bank encodes, that bank also makes the warranty.
(b) A person who undertakes to retain an item pursuant to an agreement for electronic presentment warrants to any subsequent collecting bank and to the payor bank or other payor that retention and presentment of the item comply with the agreement. If a customer of a depositary bank undertakes to retain an item, that bank also makes this warranty.
(c) A person to whom warranties are made under this section and who took the item in good faith may recover from the warrantor as damages for breach of warranty an amount equal to the loss suffered as a result of the breach, plus expenses and loss of interest incurred as a result of the breach.
Formerly: Acts 1963, c.317, s.4-209. As amended by P.L.152-1986, SEC.217; P.L.222-1993, SEC.25.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-210. Security Interest of Collecting Bank in Items, Accompanying Documents, and Proceeds

Sec. 210. (a) A collecting bank has a security interest in an item and any accompanying documents or the proceeds of either:
(1) in the case of an item deposited in an account, to the extent to which credit given for the item has been withdrawn or applied;
(2) in the case of an item for which it has given credit available for withdrawal as of right, to the extent of the credit given, whether or not the credit is drawn upon or there is a right of charge-back; or
(3) if it makes an advance on or against the item.
(b) If credit given for several items received at one (1) time or under a single agreement is withdrawn or applied in part, the security interest remains upon all the items, any accompanying documents, or the proceeds of either. For the purpose of this section, credits first given are first withdrawn.
(c) Receipt by a collecting bank of a final settlement for an item is a realization on its security interest in the item, accompanying documents, and proceeds. So long as the bank does not receive final settlement for the item or give up possession of the item or possession or control of the accompanying documents for purposes other than collection, the security interest continues to that extent and is subject to IC 26-1-9.1, but:
(1) no security agreement is necessary to make the security interest enforceable (IC 26-1-9.1-203(b)(3)(A));
(2) no filing is required to perfect the security interest; and
(3) the security interest has priority over conflicting perfected security interests in the item, accompanying documents, or proceeds.
Formerly: Acts 1963, c.317, s.4-210. As amended by P.L.152-1986, SEC.218; P.L.222-1993, SEC.26; P.L.57-2000, SEC.29; P.L.1-2002, SEC.100; P.L.143-2007, SEC.23.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-211. When Bank Gives Value for Purposes of Holder in Due Course

Sec. 211. For purposes of determining its status as a holder in due course, a bank has given value to the extent it has a security interest in an item, if the bank otherwise complies with the requirements of IC 26-1-3.1-302 on what constitutes a holder in due course.
Formerly: Acts 1963, c.317, s.4-211. As amended by P.L.222-1993, SEC.27.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-212. Presentment by Notice of Item Not Payable By, Through, or at Bank; Liability of Drawer or Endorser

Sec. 212. (a) Unless otherwise instructed, a collecting bank may present an item not payable by, through, or at a bank by sending to the party to accept or pay a record providing notice that the bank holds the item for acceptance or payment. The notice must be sent in time to be received on or before the day when presentment is due and the bank must meet any requirement of the party to accept or pay under IC 26-1-3.1-501 by the close of the bank's next banking day after it knows of the requirement.
(b) If presentment is made by notice and payment, acceptance, or request for compliance with a requirement under IC 26-1-3.1-501 is not received by the close of business on the day after maturity or, in the case of demand items, by the close of business on the third banking day after notice was sent, the presenting bank may treat the item as dishonored and charge any drawer or endorser by sending it notice of the facts.
Formerly: Acts 1963, c.317, s.4-212. As amended by P.L.152-1986, SEC.219; P.L.222-1993, SEC.28; P.L.135-2009, SEC.18.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-213. Medium and Time of Settlement by Bank

Sec. 213. (a) With respect to settlement by a bank, the medium and time of settlement may be prescribed by Federal Reserve regulations or circulars, clearing-house rules, and the like, or agreement. In the absence of such prescription:
(1) the medium of settlement is cash or credit to an account in a Federal Reserve bank of or specified by the person to receive settlement; and
(2) the time of settlement is:
(A) with respect to tender of settlement by cash, a cashier's check, or teller's check, when the cash or check is sent or delivered;
(B) with respect to tender of settlement by credit in an account in a Federal Reserve Bank, when the credit is made;
(C) with respect to tender of settlement by a credit or debit to an account in a bank, when the credit or debit is made or, in the case of tender of settlement by authority to charge an account, when the authority is sent or delivered; or
(D) with respect to tender of settlement by a funds transfer, when payment is made under IC 26-1-4.1-406(a) to the person receiving settlement.
(b) If the tender of settlement is not by a medium authorized by subsection (a) or the time of settlement is not fixed by subsection (a), no settlement occurs until the tender of settlement is accepted by the person receiving settlement.
(c) If settlement for an item is made by cashier's check or teller's check and the person receiving settlement, before its midnight deadline:
(1) presents or forwards the check for collection, settlement is final when the check is finally paid; or
(2) fails to present or forward the check for collection, settlement is final at the midnight deadline of the person receiving settlement.
(d) If settlement for an item is made by giving authority to charge the account of the bank giving settlement in the bank receiving settlement, settlement is final when the charge is made by the bank receiving settlement if there are funds available in the account for the amount of the item.
Formerly: Acts 1963, c.317, s.4-213. As amended by P.L.152-1986, SEC.220; P.L.243-1989, SEC.1; P.L.222-1993, SEC.29.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-214. Right of Charge-Back or Refund; Liability of Collecting Bank; Return of Item

Sec. 214. (a) If a collecting bank has made provisional settlement with its customer for an item and fails by reason of dishonor, suspension of payments by a bank, or otherwise to receive settlement for the item which is or becomes final, the bank may revoke the settlement given by it, charge back the amount of any credit given for the item to its customer's account, or obtain refund from its customer, whether or not it is able to return the item, if by its midnight deadline or within a longer reasonable time after it learns the facts it returns the item or sends notification of the facts. If the return or notice is delayed beyond the bank's midnight deadline or a longer reasonable time after it learns the facts, the bank may revoke the settlement, charge back the credit, or obtain refund from its customer, but it is liable for any loss resulting from the delay. These rights to revoke, charge back, and obtain refund terminate if and when a settlement for the item received by the bank is or becomes final.
(b) A collecting bank returns an item when it is sent or delivered to the bank's customer or transferor or under its instructions.
(c) A depositary bank that is also the payor may charge back the amount of an item to its customer's account or obtain refund in accordance with the section governing return of an item received by a payor bank for credit on its books (IC 26-1-4-301).
(d) The right to charge back is not affected by:
(1) previous use of a credit given for the item; or
(2) failure by any bank to exercise ordinary care with respect to the item, but a bank so failing remains liable.
(e) A failure to charge back or claim refund does not affect other rights of the bank against the customer or any other party.
(f) If credit is given in dollars as the equivalent of the value of an item payable in foreign money, the dollar amount of any charge-back or refund must be calculated on the basis of the bank-offered spot rate for the foreign money prevailing on the day when the person entitled to the charge-back or refund learns that it will not receive payment in ordinary course.
Formerly: Acts 1963, c.317, s.4-214. As amended by P.L.152-1986, SEC.221; P.L.222-1993, SEC.30.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-215. Final Payment of Item by Payor Bank; When Provisional Debits and Credits Become Final; When Certain Credits Become Available for Withdrawal

Sec. 215. (a) An item is finally paid by a payor bank when the bank has first done any of the following:
(1) Paid the item in cash.
(2) Settled for the item without having a right to revoke the settlement under statute, clearing-house rule, or agreement.
(3) Made a provisional settlement for the item and failed to revoke the settlement in the time and manner permitted by statute, clearing-house rule, or agreement.
(b) If provisional settlement for an item does not become final, the item is not finally paid.
(c) If provisional settlement for an item between the presenting and payor banks is made through a clearing house or by debits or credits in an account between them, then to the extent that provisional debits or credits for the item are entered in accounts between the presenting and payor banks or between the presenting and successive prior collecting banks seriatim, they become final upon final payment of the items by the payor bank.
(d) If a collecting bank receives a settlement for an item which is or becomes final, the bank is accountable to its customer for the amount of the item and any provisional credit given for the item in an account with its customer becomes final.
(e) Subject to (i) applicable law stating a time for availability of funds and (ii) any right of the bank to apply the credit to an obligation of the customer, credit given by a bank for an item in a customer's account becomes available for withdrawal as of right:
(1) if the bank has received a provisional settlement for the item, when the settlement becomes final and the bank has had a reasonable time to receive return of the item and the item has not been received within that time; or
(2) if the bank is both the depositary bank and the payor bank, and the item is finally paid, at the opening of the bank's second banking day following receipt of the item.
(f) Subject to applicable law stating a time for availability of funds and any right of a bank to apply a deposit to an obligation of the depositor, a deposit of money becomes available for withdrawal as of right at the opening of the bank's next banking day after receipt of the deposit.
As added by P.L.222-1993, SEC.31.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-216. Insolvency and Preference

Sec. 216. (a) If an item is in or comes into the possession of a payor or collecting bank that suspends payment and the item has not been finally paid, the item must be returned by the receiver, trustee, or agent in charge of the closed bank to the presenting bank or the closed bank's customer.
(b) If a payor bank finally pays an item and suspends payments without making a settlement for the item with its customer or the presenting bank which settlement is or becomes final, the owner of the item has a preferred claim against the payor bank.
(c) If a payor bank gives or a collecting bank gives or receives a provisional settlement for an item and thereafter suspends payments, the suspension does not prevent or interfere with the settlement's becoming final if the finality occurs automatically upon the lapse of certain time or the happening of certain events.
(d) If a collecting bank receives from subsequent parties settlement for an item, which settlement is or becomes final and the bank suspends payments without making a settlement for the item with its customer which settlement is or becomes final, the owner of the item has a preferred claim against the collecting bank.
As added by P.L.222-1993, SEC.32.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-301. Deferred Posting; Recovery of Payment by Return of Items; Time of Dishonor; Return of Items by Payor Bank

Sec. 301. (a) If a payor bank settles for a demand item other than a documentary draft presented otherwise than for immediate payment over the counter before midnight of the banking day of receipt, the payor bank may revoke the settlement and recover the settlement if, before it has made final payment and before its midnight deadline, it:
(1) returns the item;
(2) returns an image of the item, if the party to which the return is made has entered into an agreement to accept an image as a return of the item and the image is returned in accordance with that agreement; or
(3) sends a record providing notice of dishonor or nonpayment if the item is unavailable for return.
(b) If a demand item is received by a payor bank for credit on its books, it may return the item or send notice of dishonor and may revoke any credit given or recover the amount thereof withdrawn by its customer, if it acts within the time limit and in the manner specified in subsection (a).
(c) Unless previous notice of dishonor has been sent, an item is dishonored at the time when for purposes of dishonor it is returned or notice sent in accordance with this section.
(d) An item is returned:
(1) as to an item received through a clearing-house, when it is delivered to the presenting or last collecting bank or to the clearing-house or is sent or delivered in accordance with its rules; or
(2) in all other cases, when it is sent or delivered to the bank's customer or transferor or pursuant to instructions.
Formerly: Acts 1963, c.317, s.4-301. As amended by P.L.152-1986, SEC.222; P.L.222-1993, SEC.33; P.L.135-2009, SEC.19.
2023 Indiana Code › Title 26. Commercial Law › Article 1. Uniform Commercial Code › Chapter 4. Bank Deposits and Collections › 26-1-4-302. Payor Bank's Responsibility for Late Return of Item

Sec. 302. (a) If an item is presented to and received by a payor bank, the bank is accountable for the amount of:
(1) a demand item, other than a documentary draft, whether properly payable or not, if the bank, in any case in which it is not also the depositary bank, retains the item beyond midnight of the banking day of receipt without settling for it or, whether or not it is also the depositary bank, does not pay or return the item or send notice of dishonor until after its midnight deadline; or
(2) any other properly payable item unless, within the time allowed for acceptance or payment of that item, the bank either accepts or pays the item or returns it and accompanying documents.
(b) The liability of a payor bank to pay an item under subsection (a) is subject to defenses based on breach of a presentment warranty (IC 26-1-4-208) or proof that the person seeking enforcement of the liability presented or transferred the item for the purpose of defrauding the payor bank.
Formerly: Acts 1963, c.317, s.4-302. As amended by P.L.152-1986, SEC.223; P.L.222-1993, SEC.34.