J. MILLARD TAWES, Governor                      867

(1)   Unless otherwise instructed, a collecting bank may present an
item not payable by, through or at a bank by sending to the party
to accept or pay a written notice that the bank holds the item for
acceptance or payment. The notice must be sent in time to be re-
ceived on or before the day when presentment is due and the bank
must meet any requirement of the party to accept or pay under Sec-
tion 3—505 by the close of the bank's next banking day after it knows
of the requirement.

(2)   Where presentment is made by notice and neither honor nor
request for compliance with a requirement under Section 3—505 is
received by the close of business on the day after maturity or in the
case of demand items by the close of business on the third banking
day after notice was sent, the presenting bank may treat the item
as dishonored and charge any secondary party by sending him notice
of the facts.

4—211. Media of Remittance; Provisional and Final Settlement in
Remittance Cases.

(1)  A collecting bank may take in settlement of an item

(a)  a check of the remitting bank or of another bank on any bank
except the remitting bank; or

(b)  a cashier's check or similar primary obligation of a remitting
bank which is a member of or clears through a member of the same
clearing house or group as the collecting bank; or

(c)  appropriate authority to charge an account of the remitting
bank or of another bank with the collecting bank; or

(d)  if the item is drawn upon or payable by a person other than
a bank, a cashier's check, certified check or other bank check or obli-
gation.

(2)  If before its midnight deadline the collecting bank properly
dishonors a remittance check or authorization to charge on itself or
presents or forwards for collection a remittance instrument of
or on another bank which is of a kind approved by sub-section (1) or
has not been authorized by it, the collecting bank is not liable to
prior parties in the event of the dishonor of such check, instrument
or authorization.

(3)  A settlement for an item by means of a remittance instrument
or authorization to charge is or becomes a final settlement as to both
the person making and the person receiving the settlement

(a)  if the remittance instrument or authorization to charge is of
a kind approved by Sub-section (1) or has not been authorized by
the person receiving the settlement and in either case the person
receiving the settlement acts seasonably before its midnight deadline
in presenting, forwarding for collection or paying the instrument or
authorization,—at the time the remittance instrument or authoriza-
tion is finally paid by the payor by which it is payable;

(b)  if the person receiving the settlement has authorized remit-
tance by a non-bank check or obligation or by a cashier's check or
similar primary obligation of or a check upon the payor or other
remitting bank which is not of a kind approved by Sub-section (1)
(b),—at the time of the receipt of such remittance check or obliga-
tion; or