Texas Business and Commerce Code 4.106 – Payable Through or Payable At Bank; Collecting Bank
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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.
Terms Used In Texas Business and Commerce Code 4.106
- Draft: means a draft as defined in Section Texas Business and Commerce Code 4.104
- Drawee: means a person ordered in a draft to make payment. See Texas Business and Commerce Code 4.104
- Item: means an instrument or a promise or order to pay money handled by a bank for collection or payment. See Texas Business and Commerce Code 4.104
(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.