§ 25-4-204. Methods of sending and presenting; sending directly to payor.

§25‑4‑204.  Methods of sending and presenting; sending directly topayor.

(a)        A collecting bankshall send items by a reasonably prompt method, taking into considerationrelevant instructions, the nature of the item, the number of those items onhand, the cost of collection involved, and the method generally used by it orothers to present those items.

(b)        A collecting bankmay send:

(1)        An item directly tothe payor bank;

(2)        An item to a nonbankpayor if authorized by its transferor; and

(3)        An item other thandocumentary drafts to a nonbank payor, if authorized by federal reserveregulation or operating circular, clearing‑house rule, or the like.

(c)        Presentment may bemade by a presenting bank at a place where the payor bank or other payor hasrequested that presentment be made. (1921, c. 4, s. 39; C.S., s.220(n); 1949, c. 818; 1965, c. 700, s. 1; 1995, c. 232, s. 2.)