Vermont § 205 - § 4—205.

§ 205. § 4—205.

• Depositary bank holder of unindorsed item If a customer delivers an item to a depositary bank for collection: (1) the depositary bank becomes a holder of the item at the time it receives the item
  for collection if the customer at the time of delivery was a holder of the item, whether
  or not the customer indorses the item, and, if the bank satisfies the other requirements
  of section 3—302 of this title, it is a holder in due course; and (2) the depositary bank warrants to collecting banks, the payor bank or other payor, and
  the drawer that the amount of the item was paid to the customer or deposited to the
  customer’s account. (Added 1993, No. 158 (Adj. Sess.), § 13, eff. Jan. 1, 1995.)