ALBERT C. RITCHIE, GOVERNOR. 1147

ble therefor as if the proceeds were actually received by it

in money.

93. ELECTION TO TREAT AS DISHONORED ITEMS PRE-
SENTED 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 unre-
quested or unauthorized credit therefor on its books or the
books of another bank; or

(4) Where the drawee or payor shall retain such item with-
out remitting 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 ordi-
nary 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.

94. NOTICE OF DISHONOR OF ITEMS PRESENTED BY MAIL.
In case of tie 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