NMSA 55-4-106. Payable through or payable at bank; collecting bank

55-4-106. 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. History: 1978 Comp., § 55-4-106, enacted by Laws 1992, ch. 114, § 161. OFFICIAL COMMENTS UCC Official Comments © by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved. 1. This section replaces former Sections 3-120 and 3-121 [repealed]. 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. Subsection (b) retains the alternative approach of the present law. Under Alternative A 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 [55-4-301 and 55-4- 302 NMSA 1978, respectively] apply. Under Alternative B a "payable at" bank is in the same position as a "payable through" bank under Subsection (a). 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 [55-4-302 NMSA 1978] for holding an item beyond its deadline. The liability of the bank is governed by Sections 4- 202(a) and 4-103(e) [55-4-202 and 55-4-103 NMSA 1978, respectively].