30-4-209. When bank gives value for purposes of holder in due course. For purposes of determining its status as a holder in due course, a bank has given value to the extent it has a security interest in an item, provided the bank otherwise complies with the requirements of 30-3-302 on what constitutes a holder in due course.

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Terms Used In Montana Code 30-4-209

  • bank: means any person engaged in the business of banking, including a savings bank, savings and loan association, credit union, or trust company;

    (2)"depositary 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 depositary 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. See Montana Code 30-4-105