Kentucky Statutes 355.4-204 – Methods of sending and presenting — Sending directly to payor bank
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(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.
Effective: January 1, 1997
History: Amended 1996 Ky. Acts ch. 130, sec. 86, effective January 1, 1997. — Amended 1964 Ky. Acts ch. 130, sec. 9, effective July 1, 1964. — Created 1958 Ky. Acts ch. 77, sec. 4-204, effective July 1, 1960.
(2) A collecting bank may send:
Terms Used In Kentucky Statutes 355.4-204
- Federal: refers to the United States. See Kentucky Statutes 446.010
- Item: means an instrument or a promise or order to pay money handled by a bank for collection or payment. See Kentucky Statutes 355.4-104
(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.
Effective: January 1, 1997
History: Amended 1996 Ky. Acts ch. 130, sec. 86, effective January 1, 1997. — Amended 1964 Ky. Acts ch. 130, sec. 9, effective July 1, 1964. — Created 1958 Ky. Acts ch. 77, sec. 4-204, effective July 1, 1960.