Texas Business & Commerce Code

§ 4.204 — METHODS OF SENDING AND PRESENTING; SENDING DIRECTLY TO PAYOR BANK

BC § 4.204Title 1. UNIFORM COMMERCIAL CODE · Ch. 4. BANK DEPOSITS AND COLLECTIONS · Art. B. COLLECTION OF ITEMS: DEPOSITARY AND COLLECTING BANKS

Statute text

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(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 non-bank payor if authorized by its transferor; and

(3)an item other than a documentary draft to a non-bank 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.

Legislative history

Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1, 1967. Amended by Acts 1995, 74th Leg., ch. 921, Sec. 4, eff. Jan. 1, 1996.