Collection item

Collection item

A collection item (also called a noncash item) is an item presented to a bank for deposit that the bank will not, under its procedures, provisionally credit to the depositor's account or which the bank cannot (due to provisions or law or regulation) provisionally credit to a depositor's account.[1] Collection items do not create float.[1] Payment must be received from the payor bank before the item may be credited to the depositor's account.[2]

A collection item may be contrasted with a "demand item" or cash item, under which the bank credits the depositor's account immediately. Cheques (or "checks" as they are known in the United States) are usually handled by banks as a cash item, on the assumption that the payor bank will honor the check.[3] Cheques create float (cash in the payor's account which the payor still has access to while the transition has yet to be finalized).

Other types of collection items include:

A noncash item is a special kind of collection item. Noncash items include checks which carry special instructions, checks drawing on funds in foreign banks, and bankers' acceptances.[5]

In the United States, fees are generally imposed on collection items due to the special handling which they require.[2]

See also

  • Warrant of payment

References

  1. ^ a b American Bankers Association, p. 77.
  2. ^ a b c d Fitch, p. 95.
  3. ^ Speidel and Rusch, p. 318.
  4. ^ Coe, p. 196.
  5. ^ Fitch, p. 321.

Bibliography

  • American Bankers Association. Banking & Finance Terminology. Washington, D.C.: American Bankers Association, 1999.
  • Coe, Charle K. Nonprofit Financial Management: A Practical Guide. Hoboken, N.J.: Wiley, 2011.
  • Fitch, Thomas P. Dictionary of Banking Terms. Hauppauge, N.Y.: Barron's, 2006.
  • Speidel, Richard E. and Rusch, Linda J. Commercial Transactions: Sales, Leases, and Licenses. St. Paul, Minn.: West Group, 2001.

Wikimedia Foundation. 2010.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • collection item — collection item, Banking. a deposited check, draft, or note which, unlike a cash deposit, is not credited to the account of the depositor until it is paid by the bank against which it is drawn …   Useful english dictionary

  • collection item — An item that a bank takes for its customer s account for which credit is not given until payment for the item is actually received. A documentary draft is ordinarily treated as a collection item …   Black's law dictionary

  • collection item — An item that a bank takes for its customer s account for which credit is not given until payment for the item is actually received. A documentary draft is ordinarily treated as a collection item …   Black's law dictionary

  • Item — may refer to:* Item, entry in a list, or one object in a collection of objects. * Item, the name of a town in Abia State of Nigeria. * Collector s item, an object or item of any kind that has become valuable * Configuration item, form the basis… …   Wikipedia

  • Collection (computing) — In computer science, a collection is a grouping of some variable number of data items (possibly zero) that have some shared significance to the problem being solved and need to be operated upon together in some controlled fashion. Generally, the… …   Wikipedia

  • item — i·tem (ī’təm) n. 1. A single article or unit in a collection, enumeration, or series. 2. A clause of a document, such as a bill or charter. 3. An entry in an account. 4. a) A bit of information; a detail. b) …   Word Histories

  • Item (game) — In pencil and paper games and computer and video games, an item is an object within the game world that can be collected by a player or, occasionally, a non player character. These items are sometimes called pick ups .Items are most often… …   Wikipedia

  • item — [[t]a͟ɪtəm[/t]] ♦♦ items 1) N COUNT An item is one of a collection or list of objects. → See also collector s item The most valuable item on show will be a Picasso drawing... The menu includes the occasional off beat item. 2) N COUNT An item is… …   English dictionary

  • Collection agency — A collection agency is a business that pursues payments of debts owed by individuals or businesses.[1] Most collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total amount owed.[2] There are many… …   Wikipedia

  • collection — A group of things assemhled, as a collection of rocks; an item of husiness of a collection agency or, as the term is sometimes used, of a lawyer in the commercial line; the act of receiving payment of a debt, whether payment be voluntary or… …   Ballentine's law dictionary

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”