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84-4-106. Payable through or payable at bank; collecting bank. (a) If an item states that it is "payable through" a bank identified in the item, (1) the item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item, and (2) 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.

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

History: L. 1991, ch. 296, ยง 76; February 1, 1992.


This section is identical to the 1995 Official Text except that the lower case roman numerals have been replaced by arabic numerals. It is new and is derived from 84-3-120 and 84-3-121.

Kansas has adopted the Alternative A of the two alternative subsection (b)'s, a change from the position of the former 84-3-121. Items payable at a bank operate as a draft drawn on the bank. Historical case and statutory references for the former 84-3-120 and 84-3-121 can be obtained from the 1965 and 1983 bound volume 7 of the Kansas Statutes Annotated.

In the case of a "payable through" item, such as an insurance draft, the bank which presents the item to the insurance company will be a "collecting bank" rather than a "payor bank," since the insurance company is the party on whom the draft is drawn and will make the final decision to pay each item. A payable through draft differs from a check insofar as it is not drawn on the drawer's bank account with a direction to the bank as drawee to pay it. Instead, it merely designates the bank as a collection agent to present the draft to the drawer-drawee for payment, thus giving the drawer a second look before finally approving payment through the bank. For an insurance company, use of payable through drafts also enables the company to pay its debts (claims) without maintaining idle funds subject to float.


1. Intermediary or collecting banks not liable for conversion where attorney forged client's endorsement on settlement drafts. King v. White, 265 Kan. 627, 631, 962 P.2d 475 (1998).

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