Page:United States Statutes at Large Volume 77.djvu/733

 77 STAT. ]

PUBLIC LAW 88-243-DEC. 30, 1963

(b) in case of an item for whioli it lias given credit available for withdrawal as of right, to the extent of the credit given whether or not the credit is drawn upon and whether or not there is a ri^ht of charge-back; or (c) if it makes an advance on or against the item. (2) When credit which has been given for several items received, at one time or pursuant to a single agreement is withdrawn or applied in part the security interest remains upon all the items, any accompanying documents or the proceeds of either. For the purpose of this section, credits first given are first withdrawn. (3) 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. To the extent and so long as the bank does not receive final settlement for the item or give up possession of the item or accompanying documents for purposes other than collection, the security interest continues and is subject to the provisions of article 9 except that (a) no security agreement is necessary to make the security interest enforceable (subsection (1)(b) of section 28:9—203); and (b) no filing is required to perfect the security interest; and (c) the security interest has priority over conflicting perfected security interests in the item, accompanying documents or proceeds. § 28:4—^209. When bank gives value for purposes of holder in due course For purposes of determining its status as a holder in due course, the bank has ^iven value to the extent that it has a security interest in an item provided that the bank otherwise complies with the requirements of section 28:3—302 on what constitutes a holder in due course. §28:4—^210. Presentment by notice of item not payable by, through or at a bank; liability of secondary parties (1) Unless otherwise instiiicted, 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 before the day when presentment is due and the bank must meet any requirement of the party to accept or pay under section 28:3—505 by the close of the bank's next banking day after it knows of the requirement. (2) Where presentment is made by notice and neither honor nor request for compliance with a requirement under section 28:3—505 is 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 secondary party by sending him notice of the facts. § 28:4—211. Media of remittance; provisional and final settlement in remittance cases (1) A collecting bank may take in settlement of an item (a) a check of the remitting bank or of another bank on any bank except the remitting bank; or (b) a cashier's check or similar primary obligation of a remitting bank which is a member of or clears through a member of the same clearing house or group as the collecting bank; or (c) appropriate authority to charge an account of the remitting bank or of another bank with the collectiiiir bank: or

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