Chapter 404 — UNIFORM COMMERCIAL CODE — BANK DEPOSITS AND COLLECTIONS
40 sections in this chapter.
Wis. Stat. § 404.102 Applicability
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404.102 Applicability. (1) The extent that items within this chapter are also within chs. 403 and 408, they are subject to those chapters. If there is conflict, this chapter governs ch. 403, but ch. 408 governs this chapter. (2) The liability of a bank for action or nonaction wit…
Wis. Stat. § 404.103 Variation by agreement; measure of damages; action constituting ordinary care
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404.103 Variation by agreement; measure of damages; action constituting ordinary care. (1) The effect of the provisions of this chapter 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 ex…
Wis. Stat. § 404.104 Definitions and index of definitions
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404.104 Definitions and index of definitions. (1) In this chapter, unless the context otherwise requires: (a) “Account” means any 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 …
Wis. Stat. § 404.105 “Bank”; “collecting bank”; “depository bank”; “intermediary bank”; “payer bank”; “presenting bank”
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404.105 “Bank”; “collecting bank”; “depository bank”; “intermediary bank”; “payer bank”; “presenting bank”. 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) “C…
Wis. Stat. § 404.106 Payable through or payable at bank; collecting bank
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404.106 Payable through or payable at bank; collecting bank. (1) 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…
Wis. Stat. § 404.107 Separate office of a bank
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404.107 Separate office of a bank. 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 ch. 403. His…
Wis. Stat. § 404.108 Time of receipt of items
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404.108 Time of receipt of items. (1) 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 p.m. or later as a cutoff hour for the handling of mone…
Wis. Stat. § 404.109 Delays
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404.109 Delays. (1) Unless otherwise instructed, a collecting bank in a good faith effort to secure payment of a specific item drawn on a payer other than a bank, and with or without the approval of any person involved, may waive, modify or extend time limits imposed or permitted…
Wis. Stat. § 404.110 Electronic presentment
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404.110 Electronic presentment. (1) “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 describin…
Wis. Stat. § 404.111 Statute of limitations
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404.111 Statute of limitations. An action to enforce an obligation, duty, or right arising under this chapter must be commenced within 3 years after the cause of action accrues. History: 1995 a. 449. 404.206 learning that the item has not been paid or accepted, as the case may be…
Wis. Stat. § 404.201 Status of collecting bank as agent and provisional status of credits; applicability of chapter; item endorsed “pay any bank”
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404.201 Status of collecting bank as agent and provisional status of credits; 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…
Wis. Stat. § 404.202 Responsibility for collection or return; when action timely
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404.202 Responsibility for collection or return; when action timely. (1) A collecting bank must exercise ordinary care in all of the following: (a) Presenting an item or sending it for presentment. (b) Sending notice of dishonor or nonpayment or returning an item other than a doc…
Wis. Stat. § 404.203 Effect of instructions
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404.203 Effect of instructions. Subject to s. 403.420 concerning conversion of instruments and to s. 403.206 concerning restrictive endorsements, only a collecting bank’s transferor can give instructions that affect the bank or constitute notice to it and a collecting bank is not…
Wis. Stat. § 404.204 Methods of sending and presenting; sending directly to payer bank
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404.204 Methods of sending and presenting; sending directly to payer bank. (1) A collecting bank shall send items by a reasonably prompt method, taking into consideration relevant instructions, the nature of the item, the number of those items on hand, the cost of collection invo…
Wis. Stat. § 404.205 Depositary bank holder of unendorsed item
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404.205 Depositary bank holder of unendorsed item. If a customer delivers an item to a depositary bank for collection, all of the following apply: (1) The depositary bank becomes a holder of the item at the time that it receives the item for collection if the customer at the time…
Wis. Stat. § 404.206 Transfer between banks
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404.206 Transfer between banks. Any agreed method May 22, 2026, are designated by NOTES. (Published 5-22-26) 404.206 UCC — BANK DEPOSITS AND COLLECTIONS that identifies the transferor bank is sufficient for the item’s further transfer to another bank. History: 1995 a. 449.
Wis. Stat. § 404.207 Transfer warranties
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404.207 Transfer warranties. (1) A customer or collecting bank that transfers an item and receives a settlement or other consideration warrants all of the following to the transferee and to any subsequent collecting bank: (a) The warrantor is a person entitled to enforce the item…
Wis. Stat. § 404.208 Presentment warranties
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404.208 Presentment warranties. (1) 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…
Wis. Stat. § 404.209 Encoding and retention warranties
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404.209 Encoding and retention warranties. (1) A person who encodes information on or with respect to an item after issue warrants to any subsequent collecting bank and to the payer bank or other payer that the information is correctly encoded. If the customer of a depositary ban…
Wis. Stat. § 404.210 Security interest of collecting bank in items, accompanying documents and proceeds
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404.210 Security interest of collecting bank in items, accompanying documents and proceeds. (1) A collecting bank has a security interest in an item and any accompanying documents or the proceeds of either in any of the following situations: (a) In case of an item deposited in an…
Wis. Stat. § 404.211 When bank gives value for purposes of holder in due course
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404.211 When bank gives value for purposes of holder in due course. For purposes of determining its status as a holder in due course, a bank has given value to the extent that it has a security interest in an item, if the bank otherwise complies with s. 403.302 on what constitute…
Wis. Stat. § 404.212 Presentment by notice of item not payable by, through or at a bank; liability of drawer or endorser
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404.212 Presentment by notice of item not payable by, through or at a bank; liability of drawer or endorser. (1) 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 …
Wis. Stat. § 404.213 Medium and time of settlement by bank
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404.213 Medium and time of settlement by bank. (1) 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 agreement. In the absence of such prescription, all of th…
Wis. Stat. § 404.214 Right of charge-back or refund; liability of collecting bank; return of item
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404.214 Right of charge-back or refund; liability of collecting bank; return of item.
Wis. Stat. § 404.215 Final payment of item by payer bank; when provisional debits and credits become final; when certain credits become available for withdrawal
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404.215 Final payment of item by payer bank; when provisional debits and credits become final; when certain credits become available for withdrawal.
Wis. Stat. § 404.216 Insolvency and preference
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404.216 Insolvency and preference. SUBCHAPTER III COLLECTION OF ITEMS: PAYER BANKS
Wis. Stat. § 404.301 Deferred posting; recovery of payment by return of items; time of dishonor; return of items by payer bank
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404.301 Deferred posting; recovery of payment by return of items; time of dishonor; return of items by payer bank.
Wis. Stat. § 404.302 Payer bank’s responsibility for late return of item
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404.302 Payer bank’s responsibility for late return of item.
Wis. Stat. § 404.303 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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404.303 When items subject to notice, stop-payment order, legal process or setoff; order in which items may be charged or certified. SUBCHAPTER IV RELATIONSHIP BETWEEN PAYER BANK AND ITS CUSTOMER
Wis. Stat. § 404.401 When bank may charge customer’s account
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404.401 When bank may charge customer’s account.
Wis. Stat. § 404.402 Bank’s liability to customer for wrongful dishonor; time of determining insufficiency of account
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404.402 Bank’s liability to customer for wrongful dishonor; time of determining insufficiency of account.
Wis. Stat. § 404.403 Customer’s right to stop payment; burden of proof of loss
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404.403 Customer’s right to stop payment; burden of proof of loss.
Wis. Stat. § 404.404 Bank not obligated to pay check more than 6 months old
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404.404 Bank not obligated to pay check more than 6 months old.
Wis. Stat. § 404.405 Death or incompetence of customer
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404.405 Death or incompetence of customer.
Wis. Stat. § 404.406 Customer’s duty to discover and report unauthorized signature or alteration
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404.406 Customer’s duty to discover and report unauthorized signature or alteration.
Wis. Stat. § 404.407 Payer bank’s right to subrogation on improper payment
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404.407 Payer bank’s right to subrogation on improper payment. SUBCHAPTER V COLLECTION OF DOCUMENTARY DRAFTS
Wis. Stat. § 404.501 Handling of documentary drafts; duty to send for presentment and to notify customer of dishonor
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404.501 Handling of documentary drafts; duty to send for presentment and to notify customer of dishonor.
Wis. Stat. § 404.502 Presentment of “on arrival” drafts
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404.502 Presentment of “on arrival” drafts.
Wis. Stat. § 404.503 Responsibility of presenting bank for documents and goods; report of reasons for dishonor; referee in case of need
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404.503 Responsibility of presenting bank for documents and goods; report of reasons for dishonor; referee in case of need.
Wis. Stat. § 404.504 Privilege of presenting bank to deal with goods; security interest for expenses
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404.504 Privilege of presenting bank to deal with goods; security interest for expenses. of ordinary care and, in the absence of special instructions, action or nonaction consistent with clearinghouse rules and the like or with a general banking usage not disapproved by this chap…