400.4-204. Methods of sending and presenting--sending directly to payor bank.
Methods of sending and presenting--sending directly to payor bank.
400.4-204. (a) A collecting bank shall send items by areasonably prompt method, taking into consideration relevantinstructions, the nature of the item, the number of those itemson hand, the cost of collection involved and the method generallyused by it or others to present those items. (b) A collecting bank may send: (1) an item directly to the payor bank; (2) an item to a non-bank payor if authorized by itstransferor; and (3) an item other than documentary drafts to a non-bankpayor, if authorized by Federal Reserve regulation or operatingcircular, clearing-house rule, or the like. (c) Presentment may be made by a presenting bank at a placewhere the payor bank or other payor has requested thatpresentment be made.
(L. 1963 p. 503 § 4-204, A.L. 1992 S.B. 448)