{"data":{"id":"us-ky/krs-355.4-201","jurisdiction":"us-ky","citation":"KRS 355.4-201","heading":"Status of collecting bank as agent and provisional status of credits --","body":"Applicability of article -- Item indorsed \"pay any bank.\"\n(1) Unless a contrary intent clearly appears and before the time that a settlement given\nby a collecting bank for an it em is or becomes final, the bank, with respect to the\nitem, is an agent or subagent of the owner of the item and any settlement given for\nthe item is provisional. This provision applies regardless of the form of indorsement\nor lack of indorsement and even though credit given for the item is subject to\nimmediate withdrawal as of right or is in fact withdrawn; but the continuance of\nownership of an item by its owner and any rights of the owner to proceeds of the\nitem are subject to rights of a collecting bank , such as those resulting from\noutstanding advances on the item and rights of recoupment or setoff. If an item is\nhandled by banks for the purposes of presentment, payment, collection, or return,\nthe relevant provisions of this article apply even though ac tion of the parties clearly\nestablishes that a particular bank has purchased the item and is the owner of it.\n(2) After an item has been indorsed with the words \"pay any bank\" or the like, only a\nbank may acquire the rights of a holder until the item has been:\n(a) Returned to the customer initiating collection; or\n(b) Specially indorsed by a bank to a person who is not a bank.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33525","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:45Z","sha256":"b9ae22f325aa82f2dcd8ba1791c15d183d9bd50cc0620569195fd0fc65d4330b","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.4-111","next":"us-ky/krs-355.4-202"},"notice":"GroundRules: Original legal text. Not legal advice."}