Alabama § 7-4-204 Methods of Sending and Presenting; Sending Directly to Payor Bank

Alabama Statutes

§ 7-4-204 — Methods of Sending and Presenting; Sending Directly to Payor Bank

Alabama § 7-4-204

Title 7Commercial Code

Art. 4Bank Deposits and Collections

Part 2Collection of Items: Depositary and Collecting Banks

This text of Alabama § 7-4-204 (Methods of Sending and Presenting; Sending Directly to Payor Bank) is published on Counsel Stack Legal Research, covering Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ala. Code § 7-4-204 (2026).

Text

(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 nonbank payor if authorized by its transferor; and

(3)An item other than documentary drafts to a nonbank 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.

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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 nonbank payor if authorized by its transferor; and
(3) An item other than documentary drafts to a nonbank 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.