§490:4-206  Transfer between banks.  Any agreed method that identifies the transferor bank is sufficient for the item's further transfer to another bank. [L 1965, c 208, §4-206; HRS §490:4-206; am L 1991, c 118, pt of §4]

 

COMMENTS TO OFFICIAL TEXT

 

  Prior Uniform Statutory Provision:  None.

  Purposes:

  This section is designed to permit the simplest possible form of transfer from one bank to another, once an item gets in the bank collection chain, provided only identity of the transferor bank is preserved.  This is important for tracing purposes and if recourse is necessary.  However, since the responsibilities of the various banks appear in the Article it becomes unnecessary to have liability or responsibility depend on more formal indorsements.  Simplicity in the form of transfer is conducive to speed.  Where the transfer is between banks this section takes the place of the more formal requirements of Section 3-202.

  Cross References:

  Sections 3-201, 3-202.

  Definitional Cross References:

  "Bank".  Section 1-201.

  "Item".  Section 4-104.