1995 Wisconsin Act 449

449,14 Section 14 . 404.104 (1) (intro.) and (a) to (f) of the statutes are amended to read:

404.104 (1) (intro.) In this chapter, unless the context otherwise requires:

(a) “Account" means any deposit or credit account with a bank and includes a checking, time, interest or savings account;, including a demand, time, savings, passbook, share draft or like account, other than an account evidenced by a certificate of deposit.

(b) “Afternoon" means the period of a day between noon and midnight;.

(c) “Banking day" means that the part of any a day on which a bank is open to the public for carrying on substantially all of its banking functions;.

(d) “Clearinghouse" means any an association of banks or other payors payers regularly clearing items;.

(e) “Customer" means any a person having an account with a bank or for whom a bank has agreed to collect items and includes, including a bank carrying that maintains an account with at another bank;.

(f) “Documentary draft" means any negotiable or nonnegotiable draft with accompanying documents, securities or other papers to be delivered against honor of the draft; a draft to be presented for acceptance or payment if specified documents, certificated securities or instructions for uncertificated securities, or other certificates, statements or the like are to be received by the drawee or other payer before acceptance or payment of the draft.

449,15 Section 15 . 404.104 (1) (g), (h) and (j) of the statutes are renumbered 404.104 (1) (i), (j) and (k) and amended to read:

404.104 (1) (i) “Item" means any an instrument for the payment of money even though it is not negotiable but does not include money; or a promise or order to pay money handled by a bank for collection or payment. “Item" does not include a payment order governed by ch. 410 or a credit or debit card slip.

(j) “Midnight deadline" with respect to a bank is midnight on its next banking day following the banking day on which it receives the relevant item or notice or from which the time for taking action commences to run, whichever is later;.

(k) “Settle" means to pay in cash, by clearinghouse settlement, in a charge or credit or by remittance, or otherwise as instructed agreed. A settlement may be either provisional or final;.

449,16 Section 16 . 404.104 (1) (g) and (h) of the statutes are created to read:

404.104 (1) (g) “Draft" means a draft as defined in s. 403.104 (5), or an item, other than an instrument, that is an order.

(h) “Drawee" means a person ordered in a draft to make a payment.

449,17 Section 17 . 404.104 (1) (i) of the statutes is repealed.

449,18 Section 18 . 404.104 (1) (k) of the statutes is renumbered 404.104 (1) (L).

449,19 Section 19 . 404.104 (2) (a) to (e) of the statutes are renumbered 404.104 (2) (c) to (g), and 404.104 (2) (f), as renumbered, is amended to read:

404.104 (2) (f) “Payor “ Payer bank" — s. 404.105.

449,20 Section 20 . 404.104 (2) (a), (b) and (h) of the statutes are created to read:

404.104 (2) (a) “Agreement for electronic presentment" — s. 404.110 (1).

(b) “Bank" — s. 404.105 (1).

(h) “Presentment notice" — s. 404.110 (1).

449,21 Section 21 . 404.104 (2) (f) of the statutes is repealed.

449,22 Section 22 . 404.104 (3) (a) of the statutes is amended to read:

404.104 (3) (a) “Acceptance" — s. 403.410 403.409 (1).

449,23 Section 23 . 404.104 (3) (b), (d), (f), (g) and (h) of the statutes are renumbered 404.104 (3) (d), (f), (h), (j) and (n), and 404.104 (3) (j) and (n), as renumbered, are amended to read:

404.104 (3) (j) “Notice of dishonor" — s. 403.508 403.503.

(n) “Presentment" — s. 403.504 403.501 (1).

449,24 Section 24 . 404.104 (3) (b), (c), (e), (g), (i), (k) to (m) and (p) to (s) of the statutes are created to read:

404.104 (3) (b) “Alteration" — s. 403.407 (1).

(c) “Cashier's check" — s. 403.104 (7).

(e) “Certified check" — s. 403.409 (4).

(g) “Good faith" — s. 403.103 (1) (d).

(i) “Instrument" — s. 403.104 (2).

(k) “Order" — s. 403.103 (1) (f).

(L) “Ordinary care" — s. 403.103 (1) (g).

(m) “Person entitled to enforce" — s. 403.301.

(p) “Promise" — s. 403.103 (1) (i).

(q) “Prove" — s. 403.103 (1) (j).

(r) “Teller's check" — s. 403.104 (8).

(s) “Unauthorized signature" — s. 403.403.

449,25 Section 25 . 404.104 (3) (c), (e), (i) and (j) of the statutes are repealed.

449,26 Section 26 . 404.104 (4) of the statutes is amended to read:

404.104 (4) In addition, ch. 401 contains general definitions and principles of construction and interpretation applicable throughout this chapter.

449,27 Section 27 . 404.105 (intro.) of the statutes is amended to read:

404.105 (title) “Depositary bank"; “intermediary bank" “Bank"; “collecting bank"; “payor “depository bank"; “intermediary bank"; “payer bank"; “presenting bank"; “remitting bank". (intro.) In this chapter unless the context otherwise requires:

449,28 Section 28 . 404.105 (1) to (5) of the statutes are renumbered 404.105 (2) to (6) and amended to read:

404.105 (2) “Collecting bank" means any a bank handling the an item for collection except the payor payer bank;.

(3) “Depositary bank" means the first bank to which take an item is transferred for collection even though it is also the payor payer bank;, unless the item is presented for immediate payment over the counter.

(4) “Intermediary bank" means any a bank to which an item is transferred in course of collection except the depositary or payor payer bank ;.

(5) “Payor “Payer bank" means a bank by which an item is payable as drawn or accepted; that is the drawee of a draft.

(6) “Presenting bank" means any a bank presenting an item except a payor payer bank;.

449,29 Section 29 . 404.105 (1) of the statutes is created to read:

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

449,30 Section 30 . 404.105 (6) of the statutes is repealed.

449,31 Section 31 . 404.106 to 404.108 of the statutes are renumbered 404.107 to 404.109 and amended to read:

404.107 Separate office of a bank. A branch or separate office of a bank is a separate bank for the purpose of computing the time within which and determining the place at or to which action may be taken or notices or orders shall must be given under this chapter and under ch. 403.

404.108 Time of receipt of items. (1) For the purpose of allowing time to process items, prove balances and make the necessary entries on its books to determine its position for the day, a bank may fix an afternoon hour of 2 p.m. or later as a cut-off cutoff hour for the handling of money and items and the making of entries on its books.

(2) Any An item or deposit of money received on any day after a cut-off cutoff hour so fixed or after the close of the banking day may be treated as being received at the opening of the next banking day.

404.109 Delays. (1) Unless otherwise instructed, a collecting bank in a good faith effort to secure payment may, in the case of a specific items item drawn on a payer other than a bank, and with or without the approval of any person involved, may waive, modify or extend time limits imposed or permitted by chs. 401 to 411 for a period not in excess of an exceeding 2 additional banking day days without discharge of secondary parties and without drawers or endorsers or liability to its transferor or any a prior party.

(2) Delay by a collecting bank or payor payor bank beyond time limits prescribed or permitted by chs. 401 to 411 or by instructions is excused if the delay is caused by interruption of communication or computer facilities, suspension of payments by another bank, war, emergency conditions, failure of equipment or other circumstances beyond the control of the bank provided it and the bank exercises such diligence as the circumstances require.

449,32 Section 32 . 404.106 of the statutes is created to read:

404.106 Payable through or payable at bank; collecting bank. (1) If an item states that it is “payable through" a bank identified in the item, the item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item and the item may be presented for payment only by or through the bank.

(2) If an item states that it is “payable at" a bank identified in the item, the item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item and the item may be presented for payment only by or through the bank.

(3) If a draft names a nonbank drawee and it is unclear whether a bank named in the draft is a codrawee or a collecting bank, the bank is a collecting bank.

449,33 Section 33 . 404.109 of the statutes is repealed.

449,34 Section 34 . 404.110 of the statutes is created to read:

404.110 Electronic presentment. (1) “ Agreement for electronic presentment" means an agreement, clearinghouse rule or federal reserve regulation or operating circular, providing that presentment of an item may be made by transmission of an image of an item or information describing the item (“presentment notice") rather than delivery of the item itself. The agreement may provide for procedures governing retention, presentment, payment, dishonor and other matters concerning items subject to the agreement.

(2) Presentment of an item pursuant to an agreement for electronic presentment is made when the presentment notice is received.

(3) If presentment is made by presentment notice, a reference to “item" or “check" in this chapter means the presentment notice unless the context otherwise indicates.

449,35 Section 35 . 404.111 of the statutes is created to read:

404.111 Statute of limitations. An action to enforce an obligation, duty, or right arising under this chapter must be commenced within 3 years after the cause of action accrues.

449,36 Section 36 . The unnumbered subchapter title preceding 404.201 of the statutes is numbered subchapter II (title) of chapter 404.

449,37 Section 37 . 404.201 of the statutes is amended to read:

404.201 (title) Presumption and duration of agency status Status of collecting banks bank as agent and provisional status of credits; applicability of chapter; item indorsed endorsed “pay any bank". (1) Unless a contrary intent clearly appears and prior to before the time that a settlement given by a collecting bank for an item is or becomes final (ss. 404.211 (3), 404.212 and 404.213), the bank, with respect to the item, is an agent or subagent of the owner of the item and any settlement given for the item is provisional. This provision applies regardless of the form of indorsement endorsement or lack of indorsement endorsement and even though credit given for the item is subject to immediate withdrawal as of right or is in fact withdrawn; but the continuance of ownership of an item by its owner and any rights of the owner to proceeds of the item are subject to rights of a collecting bank, such as those resulting from outstanding advances on the item and valid rights of recoupment or setoff. When If an item is handled by banks for purposes of presentment, payment and, collection or return, the relevant provisions of this chapter apply even though action of the parties clearly establishes that a particular bank has purchased the item and is the owner of it.

(2) After an item has been indorsed endorsed with the words “pay any bank" or the like, only a bank may acquire the rights of a holder until any of the following occur:

(a) Until the The item has been returned to the customer initiating collection; or.

(b) Until the The item has been specially indorsed endorsed by a bank to a person who is not a bank.

449,38 Section 38 . 404.202 (title) and (1) (intro.) and (a) to (c) of the statutes are amended to read:

404.202 (title) Responsibility for collection or return; when action seasonable timely. (1) (intro.) A collecting bank must use exercise ordinary care in all of the following:

(a) Presenting an item or sending it for presentment; and.

(b) Sending notice of dishonor or nonpayment or returning an item other than a documentary draft to the bank's transferor after learning that the item has not been paid or accepted, as the case may be; and.

(c) Settling for an item when the bank receives final settlement; and.

449,39 Section 39 . 404.202 (1) (d) of the statutes is repealed.

449,40 Section 40 . 404.202 (1) (e) of the statutes is renumbered 404.202 (1) (d).

449,41 Section 41 . 404.202 (2) and (3) of the statutes are amended to read:

404.202 (2) A collecting bank taking proper action before its midnight deadline following receipt of an item, notice or payment acts seasonably; taking proper action within a reasonably longer time may be seasonable but the bank has the burden of so establishing exercises ordinary care under sub. (1) by taking proper action before its midnight deadline following receipt of an item, notice or settlement. Taking proper action within a reasonably longer time may constitute the exercise of ordinary care, but the bank has the burden of establishing timeliness.

(3) Subject to sub. (1) (a), a bank is not liable for the insolvency, neglect, misconduct, mistake or default of another bank or person or for loss or destruction of an item in the possession of others or in transit or in the possession of others.