California Commercial Code 4204 – (a) A collecting bank shall send items by reasonably prompt …
(a) A collecting bank shall send items by 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.
(b) A collecting bank may send:
Terms Used In California Commercial Code 4204
- 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
- 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
(1) An item directly to the payor bank.
(2) An item to a nonbank payor if authorized by its transferor.
(3) 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.
(c) Presentment may be made by a presenting bank at a place where the payor bank or other payor has requested that presentment be made.
(Amended by Stats. 1992, Ch. 914, Sec. 21. Effective January 1, 1993.)