BANKS AND TRUST COMPANIES 441

An. Code, 1924, sec. 87. 1929, ch. 454, sec. 87.

112. (Duty and Responsibility of Bank Collecting Agents.) It shall
be the duty of the initial or any subsequent agent collecting bank to
exercise ordinary care in the collection of an item and when such duty
is performed such agent bank shall not be responsible if for any cause
payment is not received in money or an unconditional credit given on the
books of another bank, which such agent bank has requested or accepted.
An initial or subsequent agent collecting bank shall be liable for its own
lack of exercise of ordinary care but shall not be liable for the neglect,
misconduct, mistakes or defaults of any other agent bank or of the drawee
or payor bank.

An. Code, 1924, sec. 88. 1929, ch. 454, sec. 88.

113. (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.

This section relates directly only to the obligation of a collecting bank to its de-
positor and not the rights and liabilities between the depositor, as payee of check, and
the drawer of it. The holder of check drawn on bank in same city, which was not de-
livered until after banking hours, was not guilty of unreasonable delay if he deposited
it in his bank the day after delivery, for presentment to drawee bank in ordinary
course through the clearing house on second day after delivery according to ordinary
usage. Title Guarantee Co. v. Alter, 167 Md. 247, 250.

This section referred to in construing sec. 120. Construction Co. v. Page, 162 Md. 359.

An. Code, 1924, sec. 89. 1929, ch. 454, sec. 89.

114. (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.

An. Code, 1924, sec. 90. 1929, ch. 454, sec. 90.

115. (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.