Under the Revised Article 3 of the Uniform Commercial Code, a check deposited in a depositary bank without indorsement makes the:
A) bank a holder of an item delivered to it only if the customer indorses it.
B) bank a holder of an item delivered to it for collection whether or not the customer indorses it.
C) customer the holder only if the bank indorses it at the time of delivery.
D) customer the holder only if the bank at the time of delivery qualified as a holder.

Question

Quizplus · Accepted Answer

The revision to Article 3 of the Uniform Commercial Code and the conforming amendments to Articles 1 and 4 address the situation in which a check is deposited in a depositary bank without indorsement. The depositary bank becomes a holder of an item delivered to it for collection, whether or not it is indorsed by the customer, if the customer at the time of delivery qualified as a holder.