KRS 355.4-205: Depositary bank holder of unindorsed item.

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 cu stomer indorses the item, and, if the bank satisfies the other

requirements of KRS 355.3-302, it is a holder in due course; and

(2) The depositary bank warrants to collecting banks, the payor bank or other payor,

and the drawer that the amount of the item was paid to the customer or deposited to

the customer's account.