BANKS AND TRUST COMPANIES. 47

1929, ch. 454, sec. 88.

88. (Rules of Ordinary Care in Forwarding and Presentment. ) (A)
Where an item is received on deposit or by a subsequent agent bank for
collection, payable in another town or city, it shall be deemed the exercise
of ordinary care to forward such item by mail, not later than the business
day next following its receipt either (1) direct to the drawee or payor
in the event such drawee or payor is a bank or (2) to another bank
collecting agent according to the usual banking custom, either located in
the town or city where the item is payable or in another town or city.

(B) Where an item is received on deposit or by a subsequent agent
bank for collection, payable by or at another bank in the same town or
city in which such agent bank is located, it shall be deemed the exercise
of ordinary care to present the item for payment at any time not later
than the next business day following the day on which the item is received
either (1) at the counter of the drawee or payor by agent or messenger
or (2) through the local clearing house under the regular established pro-
cedure, or according to the usual banking custom where the collecting or
payor bank is located in an outlying district.

(C) The designation of the above methods shall not exclude any other
method of forwarding or presentment which under existing rules of law
would constitute ordinary care.

1929, ch. 454, sec. 89.

89. (Items Received Through the Mail. ) Where the item is received
by mail by a solvent drawee or payor bank, it shall be deemed paid when
the amount is finally charged to the account of the maker or drawer.

1929, ch. 454, sec. 90.

90. (Items Lost in Transit. ) Where an agent bank forwards an item
for collection, it shall not be responsible for its loss or destruction in
transit or, when in the possession of others, for its inability to repossess
itself thereof, provided there has been no lack of ordinary care on its part.

1929, ch. 454, sec. 91.

91. (Medium of Payment. ) Where ordinary care is exercised, any
agent collecting bank may receive in payment of an item without becom-
ing responsible as debtor therefor, whether presented by mail, through the
clearing house or over the counter of the drawee or payor, in lieu of money,
either (a) the check or draft of the drawee or payor upon another bank
or (b) the check or draft of any other bank upon any bank other than the
drawee or payor of the item or (c) such method of settlement as may be
customary in a local clearing house or between clearing banks or otherwise;
provided that whenever such agent collecting bank shall request or accept
in payment an unconditional credit which has been given to it on the books
of the drawee or payor or on the books of any other bank, such agent
collecting bank shall become debtor for such item and shall be responsible
therefor as if the proceeds were actually received by it in money.