The Law Dictionary

Featuring Black’s Law Dictionary Free Online Legal Dictionary 2nd Ed.

What is COLLECTING BANK

Typically the buyer’s bank that collects whatever is due by whatever vehicle is warranted. It can be a cash payment or a time draft from a buyer. It can be an exchange for bill of lading and/or other documents that allow the buyer to take delivery of a shipment. The collecting bank delivers the payment received to the remitting bank, typically the seller’s bank, for final delivery to the seller.

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