Chap. 336.—An ACT defining liability of collecting bank sending items direct to
bank on which drawn or where made payable. {H B 14]

Approved March 20, 1924.

1. Be it enacted by the general assembly of Virginia, That any
bank, banker or trust company, hereinafter called bank, organized under
the laws of, or doing business in, this State, receiving for collection or
deposit, any check, note or other negotiable instrument drawn upon or
payable at any other bank, located in another city or town whether
within or without this State, may forward such instrument for collec
tion directly to the bank on which it is drawn or at which it is made pay-
able, and the failure of such payor bank, because of its insolvency or
other default, to account for the proceeds thereof, shall not render the
forwarding bank liable therefor; on account of it having been sent direct;
provided, however, such forwarding bank shall have used due diligence
in other respects in connection with the collection of such instrument.