Title 45 — Trade and Commerce
49 chapters · 1,288 sections in this title.
AS 45.04.101 Short title.
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This chapter may be cited as Uniform Commercial Code — Bank Deposits and Collections.
AS 45.04.102 Applicability.
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(a) To the extent that items within this chapter are also within AS 45.03 and 45.08, they are subject to those chapters. If there is conflict, this chapter governs AS 45.03, but AS 45.08 governs this chapter. (b) The liability of a bank for action or nonaction with respect to an …
AS 45.04.103 Variation by agreement; measure of damages; certain action constituting ordinary care.
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(a) The effect of this chapter may be varied by agreement, but the parties to the agreement may not 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 d…
AS 45.04.104 Definitions and index of definitions.
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(a) In this chapter, unless the context otherwise requires, (1) “account” means a deposit or credit account with a bank, including a demand, time, savings, passbook, share draft, or like account, other than an account evidenced by a certificate of deposit; (2) “afternoon” means t…
AS 45.04.105 “Bank”; “depositary bank”; “intermediary bank”; “collecting bank”; “payor bank”; “presenting bank.”
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In this chapter, (1) “bank” means a person engaged in the business of banking, including a savings bank, savings and loan association, credit union, or trust company; (2) “collecting bank” means a bank handling an item for collection except the payor bank; (3) “depositary bank” m…
AS 45.04.106 Payable through or payable at bank; collecting bank.
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(a) If an item states that it is “payable through” a bank identified in the item, the item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item, and the item may be presented for payment only by or through the bank. (b) If an item sta…
AS 45.04.107 Separate office of a bank.
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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 this chapter and under AS 45.03.
AS 45.04.108 Time of receipt of items.
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(a) To allow 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 the book…
AS 45.04.109 Delays.
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(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 a person involved, may waive, modify, or extend time limits imposed or permitted by the code for …
AS 45.04.110 Electronic presentment.
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(a) “Agreement for electronic presentment” means an agreement, clearinghouse 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, a “presentment noti…
AS 45.04.111 Statute of limitations.
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Article 2. Collection of Items: Depositary and Collecting Banks. An action to enforce an obligation, duty, or right arising under this chapter must be commenced within three years after the cause of action accrues.
AS 45.04.201 Status of collecting bank as agent and provisional status of credits; applicability; item endorsed “pay any bank”.
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(a) Unless a contrary intent clearly appears and before a settlement given by a collecting bank for an item becomes final, the bank, with respect to the item, is an agent or subagent of the owner of the item and a settlement given for the item is provisional. This provision appli…
AS 45.04.202 Responsibility for collection or return; when action timely.
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(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 a…
AS 45.04.203 Effect of instructions.
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Subject to the provisions concerning conversion of instruments (AS 45.03.420) and restrictive endorsements (AS 45.03.206), 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 parti…
AS 45.04.204 Methods of sending and presenting; sending directly to payor bank.
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(a) A collecting bank shall send items by a reasonably prompt method, taking into consideration relevant instructions, the nature of the item, the number of the items on hand, the cost of collection involved, and the method generally used by it or others to present the items. (b)…
AS 45.04.205 Depositary bank holder of unendorsed item.
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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,…
AS 45.04.206 Transfer between banks.
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Any agreed method that identifies the transferor bank is sufficient for the item's further transfer to another bank.
AS 45.04.207 Transfer warranties.
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(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…
AS 45.04.208 Presentment warranties.
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(a) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, the person obtaining payment or acceptance, at the time of presentment, and a previous transferor of the draft, at the time of transfer, warrant to the drawee…
AS 45.04.209 Encoding and retention warranties.
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(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 warrant…
AS 45.04.210 Security interest of collecting bank in items, accompanying documents, and proceeds.
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(a) A collecting bank has a security interest in an item and any accompanying documents or the proceeds of either (1) in 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 case of an item for which it ha…
AS 45.04.211 When bank gives value for purposes of holder in due course.
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To determine 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 AS 45.03.302 on what constitutes a holder in due course.
AS 45.04.212 Presentment by notice of item not payable by, through, or at a bank; liability of drawer or endorser.
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(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 written notice that the bank holds the item for acceptance or payment. The notice must be sent in time to be received on or befo…
AS 45.04.213 Medium and time of settlement by bank.
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(a) With respect to settlement by a bank, the medium and time of settlement may be prescribed by Federal Reserve regulations or circulars, clearinghouse rules, and the like, or by agreement. In the absence of a prescription (1) the medium of settlement is cash or credit to an acc…
AS 45.04.214 Right of charge back or refund; liability of collecting bank; return of item.
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(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 a settlement for the item that is or becomes final, the bank may revoke the settlement given by it, …
AS 45.04.215 Final payment of item by payor bank; when provisional debits and credits become final; when certain credits become available for withdrawal.
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(a) An item is finally paid by a payor bank when the bank has first (1) paid the item in cash; (2) settled for the item without having a right to revoke the settlement under statute, clearinghouse rule, or agreement; or (3) made a provisional settlement for the item and failed to…
AS 45.04.216 Insolvency and preference.
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Article 3. Collection of Items: Payor Banks. (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 shall be returned by the receiver, trustee, or agent in charge of the closed bank to…
AS 45.04.301 Deferred posting; recovery of payment by return of items; time of dishonor; return of items by payor bank.
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(a) If a payor bank settles for a demand item other than a documentary draft presented other 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…
AS 45.04.302 Payor bank's responsibility for late return of item.
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(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, (A) in any case in which it is not also the depositary bank, retains the item be…
AS 45.04.303 When items subject to notice, stop-payment order, legal process, or setoff; order in which items may be charged or certified.
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Article 4. Relationship Between Payor Bank and Its Customer. (a) Any knowledge, notice, or stop-payment order received by, legal process served upon, or setoff exercised by a payor bank is too late to terminate, suspend, or modify the bank's right or duty to pay an item or to cha…
AS 45.04.401 When bank may charge customer's account.
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(a) A bank may charge against the account of a customer an item that is properly payable from that account even though the charge creates an overdraft. An item is properly payable if it is authorized by the customer and is in accordance with any agreement between the customer and…
AS 45.04.402 Bank's liability to customer for wrongful dishonor; time of determining insufficiency of account.
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(a) Except as otherwise provided in this chapter, a payor bank wrongfully dishonors an item if it dishonors an item that is properly payable, but a bank may dishonor an item that would create an overdraft unless it has agreed to pay the overdraft. (b) A payor bank is liable to it…
AS 45.04.403 Customer's right to stop payment; burden of proof of loss.
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(a) A customer, or any person authorized to draw on the account if there is more than one person, may stop payment of any item drawn on the customer's account or close the account by an order to the bank describing the item or account with reasonable certainty, received at a time…
AS 45.04.404 Bank not obligated to pay check more than six months old.
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A bank is under no obligation to a customer having a checking account to pay a check, other than a certified check, that is presented more than six months after its date, but it may charge its customer's account for a payment made later in good faith.
AS 45.04.405 Death or incompetence of a customer.
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(a) A payor or collecting bank's authority to accept, pay, or collect an item or to account for proceeds of its collection if otherwise effective is not rendered ineffective by incompetence of a customer of either bank existing at the time the item is issued or its collection is …
AS 45.04.406 Customer's duty to discover and report unauthorized signature or alteration.
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(a) A bank that sends or makes available to a customer a statement of account showing payment of items for the account shall either return or make available to the customer the items paid or provide information in the statement of account sufficient to allow the customer reasonab…
AS 45.04.407 Payor bank's right to subrogation on improper payment.
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Article 5. Collection of Documentary Drafts. If a payor bank has paid an item over the order of the drawer or maker to stop payment, or after an account has been closed, or otherwise under circumstances giving a basis for objection by the drawer or maker, to prevent unjust enrich…
AS 45.04.501 Handling of documentary drafts; duty to send for presentment and to notify customer of dishonor.
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A bank that takes a documentary draft for collection must present or send the draft and accompanying documents for presentment and, upon learning that the draft has not been paid or accepted in due course, must seasonably notify its customer of this fact even though it may have d…
AS 45.04.502 Presentment of “on arrival” drafts.
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If a draft or the relevant instructions require presentment “on arrival,” “when goods arrive,” or the like, the collecting bank need not present until in its judgment a reasonable time for arrival of the goods has expired. Refusal to pay or accept because the goods have not arriv…
AS 45.04.503 Responsibility of presenting bank for documents and goods; report of reasons for dishonor; referee in case of need.
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(a) Unless otherwise instructed and except as provided in AS 45.05, a bank presenting a documentary draft (1) must deliver the documents to the drawee on acceptance of the draft if it is payable more than three days after presentment; otherwise, only on payment; and (2) upon dish…
AS 45.04.504 Privilege of presenting bank to deal with goods; security interest for expenses.
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(a) A presenting bank that, following the dishonor of a documentary draft, seasonably requests instructions but does not receive them within a reasonable time, may store, sell, or otherwise deal with the goods in a reasonable manner. (b) For its reasonable expenses incurred by ac…