48 ARTICLE 11.

1929, ch. 454, sec. 92.

92. (Medium of Remittance. ) Where ordinary care is exercised, any
agent collecting bank may receive from any subsequent bank in the chain
of collection in remittance for an item which has been paid, in lieu of
money, the check or draft of the remitting bank upon any bank other than
itself or the drawee or payor of the item or such other method of settle-
ment as may be customary; provided that whenever such agent collecting
bank shall request or accept an unconditional credit which has been given
to it on the books of the remitting bank 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.

1929, ch. 454, sec. 93.

93. (Election to Treat as Dishonored Items Presented by Mail. )
Where an item is duly presented by mail to the drawee or payor, whether
or not the same has been charged to the account of the maker or drawer
thereof or returned to such maker or drawer, the agent collecting bank so
presenting may, at its election, exercised with reasonable diligence, treat
such item as dishonored by non-payment and recourse may be had upon
prior parties thereto in any of the following cases:

(1) Where the check or draft of the drawee or payor bank upon another
bank received in payment therefor shall not be paid in due course;

(2) Where the drawee or payor bank shall without request or authority
tender as payment its own check or draft upon itself or other instrument
upon which it is. primarily liable;

(3) Where the drawee or payor bank shall give an unrequested or unau-
thorized credit therefor on its books or the books of another bank; or

(4) Where the drawee or payor shall retain such item without remit-
ting therefor on the day of receipt or on the day of maturity if payable
otherwise than on demand and received by it prior to or on such day of
maturity.

Provided, however, that in any case where the drawee or payor bank
shall return any such item unpaid not later than the day of receipt or of
maturity as aforesaid in the exercise of its right to make payment only at
its own counter, such item cannot be treated as dishonored by non-payment
and the delay caused thereby shall not relieve prior parties from liability.

Provided further that no agent collecting bank shall be liable to the
owner of an item where, in the exercise of ordinary care in the interest of
such owner, it makes or does not make the election above provided or
takes such steps as it may deem necessary in cases (2), (3) and (4) above.

1929, ch. 454, sec. 94.

94. (Notice of Dishonor of Items Presented by Mail. ) In case of
the dishonor of an item duly presented by mail as provided for in the next
preceding section, notice of dishonor of such item to prior parties shall be
sufficient if given with reasonable diligence after such dishonor; and fur-