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84-4-105. "Bank"; "depositary bank"; "payor bank"; "intermediary bank"; "collecting bank"; "presenting bank". In this article:

(1) "Bank" means a person engaged in the business of banking, including a savings bank, savings and loan association, credit union, or trust company.

(2) "Depository bank" means the first bank to take an item even though it is also the payor bank, unless the item is presented for immediate payment over the counter;

(3) "Payor bank" means a bank that is the drawee of a draft;

(4) "Intermediary bank" means a bank to which an item is transferred in course of collection except the depository or payor bank;

(5) "Collecting bank" means a bank handling an item for collection except the payor bank;

(6) "Presenting bank" means a bank presenting an item except a payor bank.

History: L. 1965, ch. 564, § 205; L. 1991, ch. 296, § 75; February 1, 1992.


This section is identical to the 1995 Official Text. A new definition has been added and one has been deleted. The other amendments are clarifying or stylistic.

Many of the definitions found in this section are self-explanatory. The definition of "bank" is new, and, together with 84-4-107, is substantially the same as 84-4a-105(2). A bank's rights and duties under Article 4 largely depend on which role it is playing. In the leading decision of Citizens State Bank v. Martin, 227 K. 580, 609 P.2d 670 (1980), the Kansas supreme court held that a bank to which an item is mistakenly presented due to an encoding error on the face of the check is not a "collecting bank" under subsection (d), and therefore has no duty of transferor notification. The definition of depositary bank has been amended to exclude the bank in items payable by the bank over the counter. The definition of "payor bank" has been amended to include only items on which the bank is the drawee. The definition of a "remitting bank" has been deleted since the term is not used in Article 4.


1. Depository bank cannot invoke imposter defense where attorney forged client's endorsement; intermediary or collecting banks not liable for conversion. King v. White, 265 Kam. 627, 631, 962 P.2d 475 (1998).

2. Payor bank was induced to honor demand for payment under the transfer warranties contained in the uniform commercial code, not because of any misrepresentations made by defendant; although the evidence presented in the case supported a conviction for theft by deception, the state did not name the payee bank as the victim in its complaint, so the defendant's conviction of theft by deception was reversed. State v. Ward, 52 Kan. App. 2d 663, 667-671, 372 P.3d 417 (2016), review granted (Feb. 15, 2017).

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