ORS 74.2050¹
Depositary bank as 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 customer indorses the item, and, if the bank satisfies the other requirements of ORS 73.0302 (Holder in due course), 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. [1961 c.726 §74.2050 (Depositary bank as holder of unindorsed item); 1993 c.545 §88]

Notes of Decisions

Unindorsed check bearing only depositary bank's stamp "Pay any bank--PEG" (prior endorse­ments guaranteed) was not properly payable; "P.E.G." stamp did not suffice as missing customer's indorse­ment under this sec­tion. Barber v. U.S. Na­tional Bank, 90 Or App 68, 750 P2d 1183 (1988)

1 Legislative Counsel Committee, CHAPTER 74—Bank Deposits and Collections, https://­www.­oregonlegislature.­gov/­bills_laws/­Archive/­2007ors74.­pdf (2007) (last ac­cessed Feb. 12, 2009).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2007, Chapter 74, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­074ano.­htm (2007) (last ac­cessed Feb. 12, 2009).
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information