(1) A collecting bank shall send items by a reasonably prompt method, taking into consideration relevant instructions, the nature of the item, the number of those items on hand, the cost of collection involved, and the method generally used by it or others to present those items.
(2) A collecting bank may send:
(a) An item directly to the payor bank;
(b) An item to a nonbank payor if authorized by its transferor; and
(c) An item other than documentary drafts to a nonbank payor, if authorized by Federal Reserve regulation or operating circular, clearing house rule or the like.
(3) Presentment may be made by a presenting bank at a place where the payor bank or other payor has requested that presentment be made. [1961 c.726 §74.2040; 1963 c.402 §3; 1993 c.545 §87]Section: Previous 74.1080 74.1090 74.1110 74.1120 74.2010 74.2020 74.2030 74.2040 74.2050 74.2060 74.2070 74.2080 74.2090 74.2100 74.2110 Next
Last modified: August 7, 2008