(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.
HISTORY: 1962 Code Section 10.4-204; 1966 (54) 2716; 2008 Act No. 204, Section 3, eff July 1, 2008.
Structure South Carolina Code of Laws
Chapter 4 - Commercial Code - Bank Deposits And Collections
Section 36-4-101. Short title.
Section 36-4-102. Applicability
Section 36-4-103. Variation by agreement; measure of damages; action constituting ordinary care.
Section 36-4-104. Definitions and index of definitions.
Section 36-4-105. Definitions of types of banks.
Section 36-4-106. Payable through or payable at bank; collecting bank.
Section 36-4-107. Separate office of bank.
Section 36-4-108. Time of receipt of items.
Section 36-4-110. Electronic presentment.
Section 36-4-111. Statute of limitations.
Section 36-4-202. Responsibility for collections or return; when action timely.
Section 36-4-203. Effect of instructions.
Section 36-4-204. Methods of sending and presenting; sending directly to payor bank.
Section 36-4-205. Depositary bank holder of unindorsed item.
Section 36-4-206. Transfer between banks.
Section 36-4-207. Transfer warranties.
Section 36-4-208. Presentment warranties.
Section 36-4-209. Encoding and retention warranties.
Section 36-4-211. When bank gives value for purposes of holder in due course.
Section 36-4-213. Medium and time of settlement by bank.
Section 36-4-214. Right of charge-back or refund; liability of collecting bank; return of item.
Section 36-4-216. Insolvency and preference.
Section 36-4-302. Payor bank's responsibility for late return of item.
Section 36-4-401. When bank may charge customer's account.
Section 36-4-403. Customer's right to stop payment; burden of proof of loss.
Section 36-4-404. Bank not obliged to pay check more than six months old.
Section 36-4-405. Death or incompetence of a customer.
Section 36-4-406. Customer's duty to discover and report unauthorized signature or alteration.
Section 36-4-407. Payor bank's right to subrogation on improper payment.
Section 36-4-502. Presentment of "on arrival" drafts.
Section 36-4-504. Privilege of presenting bank to deal with goods; security interest for expenses.