New Jersey Statutes 12A:4-204. Methods of sending and presenting; sending directly to payor bank
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Terms Used In New Jersey Statutes 12A:4-204
- 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
- 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
- Payor bank: means a bank that is the drawee of a draft. See New Jersey Statutes 12A:4-105
- Presenting bank: means a bank presenting an item except a payor bank. See New Jersey Statutes 12A:4-105
a. 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.
b. A collecting bank may send:
(1) an item directly to the payor bank;
(2) an item to a nonbank payor if authorized by its transferor; and
(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.
L.1995,c.28,s.2.