Utah Code 70A-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.
Terms Used In Utah Code 70A-4-204
- Clearinghouse: means an association of banks or other payors regularly clearing items. See Utah Code 70A-4-104
- Item: means an instrument or a promise or order to pay money handled by a bank for collection or payment. See Utah Code 70A-4-104
(2) A collecting bank may send:
(2)(a) an item directly to the payor bank;
(2)(b) an item to a nonbank payor if authorized by its transferor; and
(2)(c) an item other than documentary drafts to a nonbank payor, if authorized by Federal Reserve regulation or operating circular, clearinghouse 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.