ALBERT C. RITCHIE, GOVERNOR. 1145

or in blank, the bank may convert such an indorsement into a
restrictive indorsement by writing over the signature of the
indorser the words "for deposit" or "for collection, " or other
restrictive words to negative the presumption that such bank
of deposit or indorsee bank is owner; and in the case of an
item deposited or received for collection payable to bearer, may
negative such presumption by indorsing thereon the words
"received for deposit" or "received for collection" or words of
like import.

87. 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 collec-
tion 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.

88. RULES OF ORDINARY CARE IN FORWARDING AND PRE-
SENTMENT. (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 subse-
quent 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 messen-
ger or (2) through the local clearing house under the regular
established procedure, or according to the usual banking custom
where the collecting or payor bank is located in an outlying
district.