70A-4-204 - Methods of sending and presenting -- Sending directly to payor bank.
70A-4-204. Methods of sending and presenting -- Sending directly to payor bank.
(1) A collecting bank shall send items by a reasonably prompt method, taking intoconsideration relevant instructions, the nature of the item, the number of those items on hand, thecost 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 FederalReserve regulation or operating circular, clearinghouse rule, or the like.
(3) Presentment may be made by a presenting bank at a place where the payor bank orother payor has requested that presentment be made.
Amended by Chapter 237, 1993 General Session