(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:

Terms Used In Michigan Laws 440.4204

  • Bank: means a person engaged in the business of banking, including a saving bank, saving and loan association, credit union, or trust company. See Michigan Laws 440.4105
  • Clearing-house: means an association of banks or other payors regularly clearing items. See Michigan Laws 440.4104
  • Collecting bank: means a bank handling the item for collection except the payor bank. See Michigan Laws 440.4105
  • Item: means an instrument or a promise or order to pay money handled by a bank for collection or pay. See Michigan Laws 440.4104
  • Payor bank: means a bank that is the drawee of a draft. See Michigan Laws 440.4105
  • Presenting bank: means a bank presenting an item except a payor bank. See Michigan Laws 440.4105
  (a) An item directly to the payor bank.
  (b) An item to a nonbank payor if authorized by its transferor.
  (c) 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.
  (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.
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