SB358, s. 15 10Section 15. 404.104 (1) (g), (h) and (j) of the statutes are renumbered 404.104
11(1) (i), (j) and (k) and amended to read:
SB358,68,1512 404.104 (1) (i) "Item" means any an instrument for the payment of money even
13though it is not negotiable but does not include money;
or a promise or order to pay
14money handled by a bank for collection or payment. "Item" does not include a
15payment order governed by ch. 410 or a credit or debit card slip.
SB358,68,1816 (j) "Midnight deadline" with respect to a bank is midnight on its next banking
17day following the banking day on which it receives the relevant item or notice or from
18which the time for taking action commences to run, whichever is later ;.
SB358,68,2119 (k) "Settle" means to pay in cash, by clearinghouse settlement, in a charge or
20credit or by remittance, or otherwise as instructed agreed. A settlement may be
21either provisional or final;.
SB358, s. 16 22Section 16. 404.104 (1) (g) and (h) of the statutes are created to read:
SB358,68,2423 404.104 (1) (g) "Draft" means a draft as defined in s. 403.104 (5), or an item,
24other than an instrument, that is an order.
SB358,68,2525 (h) "Drawee" means a person ordered in a draft to make a payment.
SB358, s. 17
1Section 17. 404.104 (1) (i) of the statutes is repealed.
SB358, s. 18 2Section 18. 404.104 (1) (k) of the statutes is renumbered 404.104 (1) (L).
SB358, s. 19 3Section 19. 404.104 (2) (a) to (e) of the statutes are renumbered 404.104 (2)
4(c) to (g), and 404.104 (2) (f), as renumbered, is amended to read:
SB358,69,55 404.104 (2) (f) "Payor "Payer bank" — s. 404.105.
SB358, s. 20 6Section 20. 404.104 (2) (a), (b) and (h) of the statutes are created to read:
SB358,69,77 404.104 (2) (a) "Agreement for electronic presentment" — s. 404.110 (1).
SB358,69,88 (b) "Bank" — s. 404.105 (1).
SB358,69,99 (h) "Presentment notice" — s. 404.110 (1).
SB358, s. 21 10Section 21. 404.104 (2) (f) of the statutes is repealed.
SB358, s. 22 11Section 22. 404.104 (3) (a) of the statutes is amended to read:
SB358,69,1212 404.104 (3) (a) "Acceptance" — s. 403.410 403.409 (1).
SB358, s. 23 13Section 23. 404.104 (3) (b), (d), (f), (g) and (h) of the statutes are renumbered
14404.104 (3) (d), (f), (h), (j) and (n), and 404.104 (3) (j) and (n), as renumbered, are
15amended to read:
SB358,69,1616 404.104 (3) (j) "Notice of dishonor" — s. 403.508 403.503.
SB358,69,1717 (n) "Presentment" — s. 403.504 403.501 (1).
SB358, s. 24 18Section 24. 404.104 (3) (b), (c), (e), (g), (i), (k) to (m) and (p) to (s) of the statutes
19are created to read:
SB358,69,2020 404.104 (3) (b) "Alteration" — s. 403.407 (1).
SB358,69,2121 (c) "Cashier's check" — s. 403.104 (7).
SB358,69,2222 (e) "Certified check" — s. 403.409 (4).
SB358,69,2323 (g) "Good faith" — s. 403.103 (1) (d).
SB358,69,2424 (i) "Instrument" — s. 403.104 (2).
SB358,69,2525 (k) "Order" — s. 403.103 (1) (f).
SB358,70,1
1(L) "Ordinary care" — s. 403.103 (1) (g).
SB358,70,22 (m) "Person entitled to enforce" — s. 403.301.
SB358,70,33 (p) "Promise" — s. 403.103 (1) (i).
SB358,70,44 (q) "Prove" — s. 403.103 (1) (j).
SB358,70,55 (r) "Teller's check" — s. 403.104 (8).
SB358,70,66 (s) "Unauthorized signature" — s. 403.403.
SB358, s. 25 7Section 25. 404.104 (3) (c), (e), (i) and (j) of the statutes are repealed.
SB358, s. 26 8Section 26. 404.104 (4) of the statutes is amended to read:
SB358,70,109 404.104 (4) In addition, ch. 401 contains general definitions and principles of
10construction and interpretation applicable throughout this chapter.
SB358, s. 27 11Section 27. 404.105 (intro.) of the statutes is amended to read:
SB358,70,15 12404.105 (title) "Depositary bank"; "intermediary bank" "Bank";
13"collecting bank";
"payor "depository bank"; "intermediary bank"; "payer
14bank"; "presenting bank"
; "remitting bank". (intro.) In this chapter unless the
15context otherwise requires
:
SB358, s. 28 16Section 28. 404.105 (1) to (5) of the statutes are renumbered 404.105 (2) to (6)
17and amended to read:
SB358,70,1918 404.105 (2) "Collecting bank" means any a bank handling the an item for
19collection except the payor payer bank;.
SB358,70,22 20(3) "Depositary bank" means the first bank to which take an item is transferred
21for collection
even though it is also the payor payer bank;, unless the item is
22presented for immediate payment over the counter.
SB358,70,24 23(4) "Intermediary bank" means any a bank to which an item is transferred in
24course of collection except the depositary or payor payer bank;.
SB358,71,2
1(5) "Payor "Payer bank" means a bank by which an item is payable as drawn
2or accepted;
that is the drawee of a draft.
SB358,71,4 3(6) "Presenting bank" means any a bank presenting an item except a payor
4payer bank;.
SB358, s. 29 5Section 29. 404.105 (1) of the statutes is created to read:
SB358,71,86 404.105 (1) "Bank" means a person engaged in the business of banking,
7including a savings bank, savings and loan association, credit union or trust
8company.
SB358, s. 30 9Section 30. 404.105 (6) of the statutes is repealed.
SB358, s. 31 10Section 31. 404.106 to 404.108 of the statutes are renumbered 404.107 to
11404.109 and amended to read:
SB358,71,15 12404.107 Separate office of a bank. A branch or separate office of a bank is
13a separate bank for the purpose of computing the time within which and determining
14the place at or to which action may be taken or notices or orders shall must be given
15under this chapter and under ch. 403.
SB358,71,20 16404.108 Time of receipt of items. (1) For the purpose of allowing time to
17process items, prove balances and make the necessary entries on its books to
18determine its position for the day, a bank may fix an afternoon hour of 2 p.m. or later
19as a cut-off cutoff hour for the handling of money and items and the making of entries
20on its books.
SB358,71,23 21(2) Any An item or deposit of money received on any day after a cut-off cutoff
22hour so fixed or after the close of the banking day may be treated as being received
23at the opening of the next banking day.
SB358,72,5 24404.109 Delays. (1) Unless otherwise instructed, a collecting bank in a good
25faith effort to secure payment may, in the case of a specific items item drawn on a

1payer other than a bank,
and with or without the approval of any person involved,
2may waive, modify or extend time limits imposed or permitted by chs. 401 to 411 for
3a period not in excess of an exceeding 2 additional banking day days without
4discharge of secondary parties and without drawers or endorsers or liability to its
5transferor or any a prior party.
SB358,72,11 6(2) Delay by a collecting bank or payor payor bank beyond time limits
7prescribed or permitted by chs. 401 to 411 or by instructions is excused if the delay
8is
caused by interruption of communication or computer facilities, suspension of
9payments by another bank, war, emergency conditions, failure of equipment or other
10circumstances beyond the control of the bank provided it and the bank exercises such
11diligence as the circumstances require.
SB358, s. 32 12Section 32. 404.106 of the statutes is created to read:
SB358,72,17 13404.106 Payable through or payable at bank; collecting bank. (1) If an
14item states that it is "payable through" a bank identified in the item, the item
15designates the bank as a collecting bank and does not by itself authorize the bank
16to pay the item and the item may be presented for payment only by or through the
17bank.
SB358,72,21 18(2) If an item states that it is "payable at" a bank identified in the item, the item
19designates the bank as a collecting bank and does not by itself authorize the bank
20to pay the item and the item may be presented for payment only by or through the
21bank.
SB358,72,23 22(3) If a draft names a nonbank drawee and it is unclear whether a bank named
23in the draft is a codrawee or a collecting bank, the bank is a collecting bank.
SB358, s. 33 24Section 33. 404.109 of the statutes is repealed.
SB358, s. 34 25Section 34. 404.110 of the statutes is created to read:
SB358,73,7
1404.110 Electronic presentment. (1) "Agreement for electronic
2presentment" means an agreement, clearinghouse rule or federal reserve regulation
3or operating circular, providing that presentment of an item may be made by
4transmission of an image of an item or information describing the item
5("presentment notice") rather than delivery of the item itself. The agreement may
6provide for procedures governing retention, presentment, payment, dishonor and
7other matters concerning items subject to the agreement.
SB358,73,9 8(2) Presentment of an item pursuant to an agreement for electronic
9presentment is made when the presentment notice is received.
SB358,73,12 10(3) If presentment is made by presentment notice, a reference to "item" or
11"check" in this chapter means the presentment notice unless the context otherwise
12indicates.
SB358, s. 35 13Section 35. 404.111 of the statutes is created to read:
SB358,73,16 14404.111 Statute of limitations. An action to enforce an obligation, duty, or
15right arising under this chapter must be commenced within 3 years after the cause
16of action accrues.
SB358, s. 36 17Section 36. The unnumbered subchapter title preceding 404.201 of the
18statutes is numbered subchapter II (title) of chapter 404.
SB358, s. 37 19Section 37. 404.201 of the statutes is amended to read:
SB358,74,10 20404.201 (title) Presumption and duration of agency status Status of
21collecting
banks bank as agent and provisional status of credits;
22applicability of chapter; item
indorsed endorsed "pay any bank". (1) Unless
23a contrary intent clearly appears and prior to before the time that a settlement given
24by a collecting bank for an item is or becomes final (ss. 404.211 (3), 404.212 and
25404.213)
, the bank, with respect to the item, is an agent or subagent of the owner of

1the item and any settlement given for the item is provisional. This provision applies
2regardless of the form of indorsement endorsement or lack of indorsement
3endorsement and even though credit given for the item is subject to immediate
4withdrawal as of right or is in fact withdrawn; but the continuance of ownership of
5an item by its owner and any rights of the owner to proceeds of the item are subject
6to rights of a collecting bank, such as those resulting from outstanding advances on
7the item and valid rights of recoupment or setoff. When If an item is handled by
8banks for purposes of presentment, payment and, collection or return, the relevant
9provisions of this chapter apply even though action of the parties clearly establishes
10that a particular bank has purchased the item and is the owner of it.
SB358,74,13 11(2) After an item has been indorsed endorsed with the words "pay any bank"
12or the like, only a bank may acquire the rights of a holder until any of the following
13occur
:
SB358,74,1514 (a) Until the The item has been returned to the customer initiating collection;
15or
.
SB358,74,1716 (b) Until the The item has been specially indorsed endorsed by a bank to a
17person who is not a bank.
SB358, s. 38 18Section 38. 404.202 (title) and (1) (intro.) and (a) to (c) of the statutes are
19amended to read:
SB358,74,22 20404.202 (title) Responsibility for collection or return; when action
21seasonable timely. (1) (intro.) A collecting bank must use exercise ordinary care
22in all of the following:
SB358,74,2323 (a) Presenting an item or sending it for presentment; and.
SB358,75,3
1(b) Sending notice of dishonor or nonpayment or returning an item other than
2a documentary draft to the bank's transferor after learning that the item has not
3been paid or accepted, as the case may be; and.
SB358,75,44 (c) Settling for an item when the bank receives final settlement; and.
SB358, s. 39 5Section 39. 404.202 (1) (d) of the statutes is repealed.
SB358, s. 40 6Section 40. 404.202 (1) (e) of the statutes is renumbered 404.202 (1) (d).
SB358, s. 41 7Section 41. 404.202 (2) and (3) of the statutes are amended to read:
SB358,75,148 404.202 (2) A collecting bank taking proper action before its midnight deadline
9following receipt of an item, notice or payment acts seasonably; taking proper action
10within a reasonably longer time may be seasonable but the bank has the burden of
11so establishing
exercises ordinary care under sub. (1) by taking proper action before
12its midnight deadline following receipt of an item, notice or settlement. Taking
13proper action within a reasonably longer time may constitute the exercise of ordinary
14care, but the bank has the burden of establishing timeliness
.
SB358,75,17 15(3) Subject to sub. (1) (a), a bank is not liable for the insolvency, neglect,
16misconduct, mistake or default of another bank or person or for loss or destruction
17of an item in the possession of others or in transit or in the possession of others.
SB358, s. 42 18Section 42. 404.203 of the statutes is amended to read:
SB358,75,25 19404.203 Effect of instructions. Subject to the provisions of s. 403.419 to s.
20403.420
concerning conversion of instruments and the provisions of both ch. 403 and
21this chapter
to s. 403.206 concerning restrictive indorsements endorsements, only a
22collecting bank's transferor can give instructions which that affect the bank or
23constitute notice to it and a collecting bank is not liable to prior parties for any action
24taken pursuant to such the instructions or in accordance with any agreement with
25its transferor.
SB358, s. 43
1Section 43. 404.204 of the statutes is amended to read:
SB358,76,6 2404.204 (title) Methods of sending and presenting; sending direct
3directly to payor payer bank. (1) A collecting bank must shall send items by a
4reasonably prompt method, taking into consideration any relevant instructions, the
5nature of the item, the number of such those items on hand, and the cost of collection
6involved and the method generally used by it or others to present such those items.
SB358,76,7 7(2) A collecting bank may send any of the following:
SB358,76,88 (a) Any An item direct directly to the payor payer bank;.
SB358,76,109 (b) Any An item to any a nonbank payor payer if authorized by its transferor;
10and
.
SB358,76,1311 (c) Any An item other than documentary drafts to any a nonbank payor payer,
12if authorized by federal reserve regulation or operating letter circular, clearinghouse
13rule or the like.
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