Code of Alabama

Ala. Code § 7-4-106 (2026)

Payable through or Payable at Bank; Collecting Bank.

✓ official Alabama Legislature (ALISON) text, current July 2026
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(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, (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.

(c) If a draft names a nonbank drawee and it is unclear whether a bank named in the draft is a co-drawee or a collecting bank, the bank is a collecting bank.

(Acts 1995, No. 95-668, p. 1381, §2.)

Notes of Decisions
Cited in 2 cases, 1981–1983 · leading case: Cent. Bank of Alabama, Na v. Peoples Nat. Bank Huntsville, 401 So. 2d 14 (Ala. 1981).
Cent. Bank of Alabama, Na v. Peoples Nat. Bank Huntsville, 401 So. 2d 14 (Ala. 1981). · cites it 8× “Is Code of Alabama 1975 § 7-4-106 applicable to presenting banks as well as to payor bank? An answer to this question is determinative as to whether or not a delivery to The Madison Street Branch of the plaintiff was an effective return to the presenting bank.”
South Sound Nat'l Bank v. First Interstate Bank, 672 P.2d 1194 (Or. Ct. App. 1983). · cites it 2× “The court reasoned that, although the Florence Branch was a “separate bank” under Ala. Code § 7-4-106 , 4 the data processing center was an integral part of the branch.”
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