Section 4--208. Security Interest of Collecting Bank in Items, Accompanying Documents and Proceeds

(1) A bank has a security interest in an  item  and  any  accompanying
  documents or the proceeds of either
         (a) in  case  of an item deposited in an account to the extent to
             which credit  given  for  the  item  has  been  withdrawn  or
             applied;
         (b) 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 and  whether  or  not
             there is a right of charge-back; or
         (c) if it makes an advance on or against the item.
    (2) When credit which has been 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  time  or  pursuant to a single agreement is withdrawn or applied in part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  credits first given are first withdrawn.
    (3) 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. To the extent and so long as the bank  does  not
  receive  final settlement for the item or give up possession of the item
  or accompanying  documents  for  purposes  other  than  collection,  the
  security  interest continues and is subject to the provisions of Article
  9 except that
         (a) no security agreement  is  necessary  to  make  the  security
             interest enforceable ( Section 9--203 (b)(3)(A)); and
         (b) no filing is required to perfect the security interest; and
         (c) the security interest has priority over conflicting perfected
             security  interests  in  the  item, accompanying documents or
             proceeds.