New Jersey Statutes 12A:4-106. Payable through or payable at bank; collecting bank
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Terms Used In New Jersey Statutes 12A:4-106
- Bank: means a person engaged in the business of banking, including a savings bank, savings and loan association, credit union, or trust company. See New Jersey Statutes 12A:4-105
- Collecting bank: means a bank handling an item for collection except the payor bank. See New Jersey Statutes 12A:4-105
- Draft: means a draft as defined in 12A:3-104 or an item, other than an instrument, that is an order. See New Jersey Statutes 12A:4-104
- Drawee: means a person ordered in a draft to make payment. See New Jersey Statutes 12A:4-104
- Item: means an instrument or a promise or order to pay money handled by a bank for collection or payment. See New Jersey Statutes 12A:4-104
a. If an item states that it is “payable through” a bank identified in the item, the item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item, and 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, the item is equivalent to a draft drawn on the bank.
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.
L.1995,c.28,s.2.