California Commercial Code 4106 – (a) If an item states that it is “payable through” a bank …
(a) If an item states that it is “payable through” a bank identified in the item, (1) the item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item, and (2) the item may be presented for payment only by or through the bank.
(b) If an item states that it is “payable at” a bank identified in the item, (1) the item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item, and (2) the item may be presented for payment only by or through the bank.
Terms Used In California Commercial Code 4106
- Bank: means a person engaged in the business of banking, and includes a savings bank, savings and loan association, credit union, and trust company. See California Commercial Code 1201
- Draft: means a draft as defined in Section 3104 or an item, other than an instrument, that is an order. See California Commercial Code 4104
- Drawee: means a person ordered in a draft to make payment. See California Commercial Code 4104
- Item: means an instrument or a promise or order to pay money handled by a bank for collection or payment. See California Commercial Code 4104
(c) If a draft names a nonbank drawee and it is unclear whether a bank named in the draft is a co-drawee or a collecting bank, the bank is a collecting bank.
(Added by Stats. 1992, Ch. 914, Sec. 12. Effective January 1, 1993.)