1. (a) A collecting bank has a security interest in an item and any accompanying documents or the proceeds of either:
2. (1) In case of an item deposited in an account, to the extent to which credit given for the item has been withdrawn or applied;
3. (2) In case of an item for which it has given credit available for withdrawal as of right, to the extent of the credit given, whether or not the credit is drawn upon or there is a right of charge-back; or
4. (3) If it makes an advance on or against the item.
5. (b) If credit given for several items received at one time or pursuant to a single agreement is withdrawn or applied in part, the security interest remains upon all the items, any accompanying documents or the proceeds of either. For the purpose of this section, credits first given are first withdrawn.
6. (c) Receipt by a collecting bank of a final settlement for an item is a realization on its security interest in the item, accompanying documents, and proceeds. So long as the bank does not receive final settlement for the item or give up possession of the item or possession or control of the accompanying documents for purposes other than collection, the security interest continues to that extent and is subject to Article 9 of this title, but:
7. (1) No security agreement is necessary to make the security interest enforceable (subparagraph (A) of paragraph (3) of subsection (b) of Section 1-9-203 of this title);
8. (2) No filing is required to perfect the security interest; and

9. (3) The security interest has priority over conflicting perfected security interests in the item, accompanying documents, or proceeds.

   Oklahoma Code Comment

   This section was pre-revision Section

   4-208.

10. 1. Subsection (a) grants the

    collecting bank a security in an item to the extent of credit given that is either withdrawable as of right, withdrawn or applied. To the extent of the security interest, the bank has given value and thus may be a holder in due course under Section 4-211 (pre-revision Section 4-209). See American Exchange Bank, Collinsville, Okla. v. Cessna, 386 F.Supp. 494 (N.D. Okla. 1974); Peoples Bank of Aurora v. Haar, 421 P.2d 817 (Okla. 1966). Oklahoma also has recognized the banker's common law lien on items in the bank's possession. See Gillette v. Liberty Nat'l Bank of Tulsa, 95 Okla. 76, 218 P. 1057 (1923). This Section is in accord.

11. 2. Subsection (b) has two purposes. First, difficulties are encountered when the depositor deposits a number of items at one time, and then draws against the credit given for the deposit. If one of the items is dishonored, the question arises as to whether the credit given for that

    item has been withdrawn. The solution is that the bank has a security interest in all items. Second, this subsection adopts the "first-in, first-out" rule in determining whether the credit given for a particular item has been withdrawn.

Laws 1961, SB 36, p. 126, § 4-210; Amended by Laws 1991, SB 25, c. 117, § 114, eff. January 1, 1992; Amended by Laws 2000, SB 1519, c. 371, § 157, eff. July 1, 2001 (superseded document available); Amended by Laws 2005, HB 2035, c. 140, § 57, eff. January 1, 2006 (superseded document available).