(4-201) Agency status of collecting banks and provisional status of credit - Applicability of chapter - Item endorsed pay any bank
N.D. Cent. Code § 41-04-13
in effect41-04-13. (4-201) Agency status of collecting banks and provisional status of credit -
Applicability of chapter - Item endorsed pay any bank.
1. 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withdrawal as of right or is in fact withdrawn but the continuance of ownership of an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 valid rights of recoupment or setoff. If an item is handled by banks for
purposes of presentment, payment, collection, or return, the relevant provisions of this
chapter 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 endorsed with the words "pay any bank" or the like, only a
bank may acquire the rights of a holder until:
a. The item has been returned to the customer initiating collection; or
b. The item has been specially endorsed by a bank to a person who is not a bank.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t41c04.pdf#nameddest=41-04-13Fetched: 10/16/2026