Where the unendorsed check was delivered to the payee's depository bank for collection, with which it had a lock-box arrangement, the depository bank became a holder and was entitled to enforce the check, and the check was properly payable when presented to the drawee bank, which was entitled to charge the account of the drawer, notwithstanding the depository bank's failure to credit the correct account; the drawee bank had no liability for paying the check and its motion for summary judgment is granted.
March 14, 2005 at 12:00 AM
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