(a) "Depositary bank" means the first bank to which an item is transferred for collection even though it is also the payor bank; (b) "Payor bank" means a bank by which an item is payable as drawn or accepted; (c) "Intermediary bank" means any bank to which an item is transferred in course of collection except the depositary or payor bank;
Full Answer
A Depository Bank refers to a facility like an office, building, or even warehouse that acts as a depository for safeguarding and storage purposes. This might be a bank, a vault, an organization, or even a financial institution which inventories and helps with the act of trading securities.
Payor bank means a bank that is the drawee of a draft, including a bank that is identified as the drawee of on a check solely by inclusion of its routing number on the check.
These terms—already mentioned earlier—are defined in UCC Section 4-105. A depositary bank is the first bank to which an item is transferred for collection.
Presenting Bank: In LCs, it is the bank that presents drafts and/or documents for payment. In BCs, it is the collecting bank that makes presentation to the drawee. Principal: A term used in BCs that means the party entrusting the handling of a collection to a bank.
The bank to which a person requiring payment of a cheque or other financial document has presented the cheque or other document for payment.
The bank that cashes your check is the drawee, your employer who wrote the check is the drawer, and you are the payee.
Bank Collection is the collection of a check by the bank on behalf of a depositor. Collection can be defined as the process of clearing instruments. The instruments cover checks, demand drafts and pay orders.
A depository generally refers to a centralized safekeeping facility. A depositary, as defined under European law, is an entity eligible to act in a safekeeping and a fiduciary capacity in the EU member state of a collective investment scheme (fund), as well as providing global custody services.
The Uniform Civil Code (UCC) calls for the formulation of one law for India, which would be applicable to all religious communities in matters such as marriage, divorce, inheritance, adoption.
One who undertakes to collect cheques, drafts, bill, pay order, traveller cheque, letter of credit, dividend, debenture interest, etc., on behalf of the customer is known as a Collecting banker.
In Cheque Truncation System, the 'drawee bank' means the dealing branch of a bank accredited to a Ministry/ Department on which the cheques are drawn. The 'presenting bank' means a branch of any bank where the cheques are presented for payment by the clients.
The presenting / collecting bank is the bank that, in a documentary collection, presents the documents received from the remitting bank to the buyer and collects the payment from him. It is called collecting bank primarily because it collects the funds.
intermediary bank. any bank except the payor bank or the depositary bank to which an item is transferred in the course of this collection process. banks may have more than 1 role. during the collection process, any bank can take on one or more of the various roles of depositary, payor, collecting, or intermediary bank.
when a bank draws a check on itself and is a negotiable instrument on issue. indicates a specific payee. the bank assumes responsibility for paying the check, thus making the check more readily acceptable as a substitute for cash
a type of bank-customer relationships. arises when the customer writes a check on his or her account. in effect the customer is ordering the bank to pay the amount specified on the check to the holder when the holder presents the check to the bank for payment. also, when the customer deposits a check into their account, the bank, acting as the customer's agent, is obligated to collect payment on the check from the bank on which the check is drawn.
a special type of draft that is drawn on a bank, ordering the bank to pay a fixed amount of money on demand. most common type of negotiable instrument regulated by the Uniform Commercial Code
The bank's loss is the difference between the original amount of the check and the amount actually paid. Expedited Funds Availability Act (EFAA) 1) any local check deposited must be available for withdrawal by check or as cash within one business day from the date of deposit. 2) for nonlocal checks, funds must be available for withdrawal within not ...
when a bank pays for an item the customer purchases and then charges it to the customer's account because the customer lacked funds to purchase the item from their own account.
3) under the Check Clearing in the 21st Century Act, a bank must credit a customer's account as soon as the bank receives the funds.
Essentially, the bank, by certifying (accepting) the check, promises to pay the check at the time the check is presented.
The bank on which a check is drawn ( the drawee bank).
A system or place where banks exchange checks and drafts drawn on each other and settle daily balances.