Payable through or payable at bank; collecting bank.
(a) If an item states that it is "payable through" a bank identified in the item, (i) the item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item, and (ii) the item may be presented for payment only by or through the bank.
(b) If an item states that it is "payable at" a bank identified in the item, the item is equivalent to a draft drawn on the bank.
(c) If a draft names a nonbank drawee and it is unclear whether a bank named in the draft is a codrawee or a collecting bank, the bank is a collecting bank.
Source:Laws 1963, c. 544, Art. IV, § 4-106, p. 1814; Laws 1991, LB 161, § 77.
Under former section 3-120, draft payable "through" named bank designates that bank as "collecting bank" for presentment. Berman v. United States Nat. Bank, 197 Neb. 268, 249 N.W.2d 187 (1976).
1. This section replaces former sections 3-120 and 3-121. Some items are made "payable through" a particular bank. Subsection (a) states that such language makes the bank a collecting bank and not a payor bank. An item identifying a "payable through" bank can be presented for payment to the drawee only by the "payable through" bank. The item cannot be presented to the drawee over the counter for immediate payment or by a collecting bank other than the "payable through" bank.
2. Pursuant to subsection (b), a note payable at a bank is the equivalent of a draft drawn on the bank and the midnight deadline provisions of sections 4-301 and 4-302 apply.
3. Subsection (c) rejects the view of some cases that a bank named below the name of a drawee is itself a drawee. The commercial understanding is that this bank is a collecting bank and is not accountable under section 4-302 for holding an item beyond its deadline. The liability of the bank is governed by sections 4-103(e) and 4-202(a).