Mich. Comp. Laws » Michigan Compiled Laws / Chapter 440 / Act 174 of 1962
Michigan Compiled Laws

Mich. Comp. Laws § 440.4201 (2026)

Agency status of banks; provisional status of credits; applicability of article; endorsement with pay any bank.

✓ current as of July 2026
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UNIFORM COMMERCIAL CODE


Act 174 of 1962


440.4201 Agency status of banks; provisional status of credits; applicability of article; endorsement with pay any bank.

Sec. 4201.

    (1)  Unless a contrary intent clearly appears and before the time that a settlement given by a collecting bank for an item is or becomes final, the bank, with respect to the item, is an agent or sub-agent of the owner of the item and any settlement given for the item is provisional. This provision applies regardless of the form of indorsement or lack of indorsement and even though credit given for the item is subject to immediate withdrawal as of right or is in fact withdrawn; but the continuance of ownership of an item by its owner and any rights of the owner to proceeds of the item are subject to rights of a collecting bank, such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 rights of setoff. If an item is handled by banks for purposes of presentment, payment, collection, or return, the relevant provisions of this article apply even though action of parties clearly establishes that a particular bank has purchased the item and is the owner of it.

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

    (a) Returned to the customer initiating collection.

    (b) Specially endorsed by a bank to a person who is not a bank.

History: 1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993

Notes of Decisions
Cited in 4 cases (1 in the last 5 years), 1969–2023 · leading case: Colorado Nat'l Bank v. First Nat'l Bank & Trust Co., 459 F. Supp. 1366 (W.D. Mich. 1978).
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Colorado Nat'l Bank v. First Nat'l Bank & Trust Co., 459 F. Supp. 1366 (W.D. Mich. 1978). “§ 440.4201. Ultimate *1369 ly the check is presented to the bank upon which it is drawn, the “payor” bank, 8 which also makes a provisional settlement with the presenting bank.”
Mfrs. Nat'l Bank of Detroit v. Sutherland, 167 N.W.2d 894 (Mich. Ct. App. 1969). · cites it 2× “The bank becomes the agent or sub-agent of the owner of the instrument, PA 1962, No 174, § 4201 (MCLA § 440.4201 [Stat Ann 1964 Rev § 19.4201]).”
Hedglin v. Cmty. Bank (In re A & C Chevrolet-Olds, Inc.), 3 B.R. 396 (E.D. Mich. 1980). · cites it 2× “§ 440.4201 (U.C.C. § 4201) provides that the bookkeeping entries made by a bank increasing a depositor’s account at the time a foreign item is sent for collection is a provisional entry.”
People of Michigan v. Alexander James Horton (Mich. Ct. App. 2023). “MCL 440.4201(1), which addresses checks, collecting or depository banks, and the provisional status of check-related credits, provides that “[u]nless a contrary intent clearly appears and before the time that a settlement given by a collecting bank for an item is or becomes…”
— Mich. Comp. Laws § 440.4201(1) — 1 case
People of Michigan v. Alexander James Horton (Mich. Ct. App. 2023). “MCL 440.4201(1), which addresses checks, collecting or depository banks, and the provisional status of check-related credits, provides that “[u]nless a contrary intent clearly appears and before the time that a settlement given by a collecting bank for an item is or becomes…”
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