554.4204  Methods of sending and presenting--sending directly to payor bank.

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 any 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.

Section History: Early form

  [C66, 71, 73, 75, 77, 79, 81, § 554.4204]

Section History: Recent form

  94 Acts, ch 1167, §91, 122

Previous Section 554.4203

Next Section 554.4205

© 1999 Cornell College and League of Women Voters of Iowa

Comments about this site or page? webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.

Last update: Thu Mar 18 15:00:31 CST 1999
URL: /DOCS/IACODE/1999/554/4204.html
jhf