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Bills And Notes-Checks-Delay In Presenting For Payment Where Payee Has Deposited In Out-Of-Town Bank

Michigan Law Review

The defendant in Kenosha, Wisconsin, drew a check on a Kenosha bank and mailed it to the plaintiff in Chicago. Fallowing the practice of many other business houses in Chicago to avoid a high collection charge, the plaintiff, instead of depositing the check in Chicago, sent it by air mail the day after its receipt, for deposit and collection to the plaintiff's bank in Minneapolis, which collected the check through the Federal Reserve Bank in Chicago. The result was presentment to the drawee bank at least one business day later than would have been the case if the check had …