Texas Business & Commerce Code

§ 4.106 — PAYABLE THROUGH OR PAYABLE AT BANK; COLLECTING BANK

BC § 4.106Title 1. UNIFORM COMMERCIAL CODE · Ch. 4. BANK DEPOSITS AND COLLECTIONS · Art. A. GENERAL PROVISIONS AND DEFINITIONS

Statute text

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(a)If an item states that it is "payable through" a bank identified in the item, the item:

(1)designates the bank as a collecting bank and does not by itself authorize the bank to pay the item; and

(2)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.

Legislative history

Amended by Acts 1995, 74th Leg., ch. 921, Sec. 4, eff. Jan. 1, 1996.