Collateral

trust. A trust fund or obligation secured by collateral. i. | Collateral trust bond. A bond which is secured by collateral held in trust. A railroad requiring money may i ue collateral trust bonds i 2 and place in trust as security for them stocks by the ownership of which it controls other railroads. Collection. Same as collection item; a general name in ' banking for promi ory note, draft or check which a bank holds. for collection from another bank or from an individual. | In general use the term collection means obtaining payment. Collection charge. A charge made by banks for the collection of checks, drafts, promi ory notes, etc., which are payable (collectable) in other places. The rule of the New York Clearing House A ociation,. which applies not only to its members but to other banks t which clear through its members, is that for items collected. for the account of or in dealings with the governments of the United States, the state of New York and the city of New: York and for items payable in the cities of Boston, Providence, Albany, Troy, Jersey City, Bayonne, Hoboken, Newark, Philadelphia and Baltimore the charge shall be discretionary with the collecting bank. For items from whomsoever received (except on those points designated as discretionary) payable at points in Connecticut, Delaware, District of Columbia, Indiana, Illinois, Kentucky, Maine, Maryland, Ma achusetts, Michigan, Mi ouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia and Wis- | cons in the collecting banks shall charge not le than 1-10 of I per cent of the amount of the items respectively. - For items from whomsoever received payable at points in Alabama, Arizona, Arkansas, California, Colorado, Florida, Georgia, Idaho, Indian Territory, Iowa, Kansas, Louisiana, Minnesota, Mi i ippi, Montana, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Oklahoma, Oregon, South Carolina, South Dakota, Tenne ee, Texas, Utah, Washington, Wyoming and Canada the collecting banks shall charge not le than 1-4 of I per cent of the amount of the items respectively. In case the charge upon any item at the rate above specified does not equal to cents the collecting bank shall charge not le than that sum; but all items received from one party at the same time and payable at the same place may be added! together and treated as one item for the purpose of fixing the amount chargeable. 126