COLLECTION ITEM

collection item. An item (such as a documentary draft) taken by a bank for a customer’s account, but not credited until payment for the item has actually been received. See documentary draft under DRAFT(1). [Cases: Banks and Banking 158, 161(1). C.J.S. Banks and Banking §§ 317, 319, 322, 327, 383, 385–386, 388–392, 395–397, 399, 402, […]