A branch or separate office of a bank is a separate bank for the purpose of computing the time within which and determining the place at or to which action may be taken or notices or orders must be given under this Article and under Article 3. Source. 1993, 346:1, eff. Jan. 1, 1994.

(a) For the purpose of allowing time to process items, prove balances, and make the necessary entries on its books to determine its position for the day, a bank may fix an afternoon hour of 2 P.M. or later as a cutoff hour for the handling of money and items and the making of entries on its books. (b) An item or deposit of money received on any day after a cutoff hour so fixed or after the close of the banking day may be treated as being received at the opening of the next banking day.

(a) Unless otherwise instructed, a collecting bank in a good faith effort to secure payment of a specific item drawn on a payor other than a bank, and with or without the approval of any person involved, may waive, modify, or extend time limits imposed or permitted by this chapter for a period not exceeding two additional banking days without discharge of drawers or indorsers or liability to its transferor or a prior party.

(a) ‘Agreement for electronic presentment’ means an agreement, clearing-house rule, or Federal Reserve regulation or operating circular, providing that presentment of an item may be made by transmission of an image of an item or information describing the item (‘presentment notice’) rather than delivery of the item itself. The agreement may provide for procedures governing retention, presentment, payment, dishonor, and other matters concerning items subject to the agreement. (b) Presentment of an item pursuant to an agreement for presentment is made when the presentment notice is received.

An action to enforce an obligation, duty, or right arising under this Article must be commenced within 3 years after the cause of action accrues. Source. 1993, 346:1, eff. Jan. 1, 1994.

This legal document, part of the New Hampshire Revised Statutes under the Uniform Commercial Code, addresses the status of collecting banks as agents and the provisional status of credits. It applies to collecting banks, owners of items, and banks involved in presentment, payment, collection, or return of items. The document establishes that unless a contrary intent is clearly stated, a collecting bank is considered an agent or sub-agent of the owner of an item, and any settlement given for the item is provisional.

This legal document, part of the New Hampshire Revised Statutes under the Uniform Commercial Code, governs the responsibility of collecting banks in various actions. The collecting bank must exercise ordinary care in presenting an item or sending it for presentment, sending notice of dishonor or nonpayment, returning an item other than a documentary draft, settling for an item, and notifying its transferor of any loss or delay in transit. The bank must take proper action before its midnight deadline following receipt of an item, notice, or settlement to exercise ordinary care.

Subject to Article 3 concerning conversion of instruments (Section 3-420) and restrictive indorsements (Section 3-206), only a collecting bank’s transferor can give instructions that affect the bank or constitute notice to it, and a collecting bank is not liable to prior parties for any action taken pursuant to the instructions or in accordance with any agreement with its transferor. Source. 1993, 346:1, eff. Jan. 1, 1994.

(a) A collecting bank shall send items by a reasonably prompt method, taking into consideration relevant instructions, the nature of the item, the number of those items on hand, the cost of collection involved, and the method generally used by it or others to present those items. (b) A collecting bank may send: (1) an item directly to the payor bank; (2) an item to a nonbank payor if authorized by its transferor; and (3) an item other than documentary drafts to a nonbank payor, if authorized by Federal Reserve regulation or operating circular, clearing-house rule, or the like.

If a customer delivers an item to a depositary bank for collection: (1) the depositary bank becomes a holder of the item at the time it receives the item for collection if the customer at the time of delivery was a holder of the item, whether or not the customer indorses the item, and, if the bank satisfies the other requirements of Section 3-302, it is a holder in due course; and (2) the depositary bank warrants to collecting banks, the payor bank or other payor, and the drawer that the amount of the item was paid to the customer or deposited to the customer’s account.