New Jersey § 12a:4-201

§ 12a:4-201.

a. 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right or is in fact withdrawn; but the continuance of ownership of an item by its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 recoupment or setoff. If an item is handled by banks for purposes of presentment, payment, 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. b. 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: (1) returned to the customer initiating collection; or (2) specially indorsed by a bank to a person who is not a bank.