(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.
Structure Code of Alabama
Article 4 - Bank Deposits and Collections.
Part 2 - Collection of Items: Depositary and Collecting Banks.
Section 7-4-202 - Responsibility for Collection or Return; When Action Timely.
Section 7-4-203 - Effect of Instructions.
Section 7-4-204 - Methods of Sending and Presenting; Sending Directly to Payor Bank.
Section 7-4-205 - Depositary Bank Holder of Unindorsed Item.
Section 7-4-206 - Transfer Between Banks.
Section 7-4-208 - Presentment Warranties.
Section 7-4-207 - Transfer Warranties.
Section 7-4-209 - Encoding and Retention Warranties.
Section 7-4-211 - When Bank Gives Value for Purposes of Holder in Due Course.
Section 7-4-213 - Medium and Time of Settlement by Bank.
Section 7-4-214 - Right of Charge-Back or Refund; Liability of Collecting Bank; Return of Item.