BANKS AND TRUST COMPANIES. 149

as the proceeds are received in actual money or an unconditional credit
given on the books of another bank, which such agent has requested or
accepted. Where any such bank allows any revocable credit for an item
to be withdrawn, such agency relation, shall nevertheless continue except
the bank shall have all the rights of an owner thereof against prior and
subsequent parties to the extent of the amount withdrawn.

1929, ch. 454. sec. So.

85. Item on Same Sank. A credit given by a bank for an item
drawn on or payable at such bank shall be provisional, subject to revoca-
tion at or before the end of the day on which the item is deposited in
the event the item is found not payable for any reason. Whenever a
credit is given for an item deposited after banking hours such right of
revocation may be exercised during the following business day.

1929, ch. 434. sec. S6.

86. Legal Effect of Indorsements. An indorsement of an item by
the payee or other depositor "for deposit" shall be deemed a restrictive
indorsement and indicate that the indorsee bank is an agent for collection
and not owner of the item.

An indorsement "pay any bank or banker" or having equivalent words-
shall be deemed a restrictive indorsement and shall indicate the creation
of an agency relation in any subsequent bank to whom the paper is for-
warded unless coupled with words indicating the creation of a trustee
relationship; and such indorsement or other restrictive indorsement
whether creating an agency or trustee relationship shall constitute a
guaranty by the indorser to all subsequent holders and to the drawee or
payor of the genuineness of and the authority to make prior indorsements
and also to save the drawee or payor harmless in the event any prior
indorsement appearing thereon is defective or irregular in any respect
unless such indorsement is coupled with appropriate words disclaiming
such liability as guarantor.

Where a deposited item is payable to bearer or indorsed by the depositor
in blank or by special indorsement, the fact that such item is so payable
or indorsed shall not change the relation of agent of the bank or deposit
to the depositor, but the subsequent holders shall have the right to rely on
the presumption that the bank of deposit is the owner of the item. The
indorsement of an item by the bank of deposit or by any subsequent holder
in blank or by special indorsement or its delivery when payable to bearer,
shall carry the presumption that the indorsee or transferee is owner
provided there is nothing upon the face of the paper or in any prior
indorsement to indicate an agency or trustee relation of any prior party.
But where an item is deposited or is received for collection indorsed
specially or in blank, the bank may convert such an indorsement into a
restrictive indorsement by writing over the signature of the indorser the
words "for deposit" or "for collection, " or other restrictive words to
negative the presumption that such bank of deposit or indorsee bank