BILLS FOR COLLECTION. Bills left for collection (or " short bills," as they are some times called, a term which originated in the custom of entering the bills in the customer's account in a column " short " of the cash column) are bills which a customer leaves with his banker to be collected at maturity and of which the proceeds are to be credited to his account. Such bills may he entered to the credit of an account kept for bills received for collection and to the debit of a contra account, so that a proper record may be preserved.
Where bills are paid to credit of an account and are neither discounted nor drawn against, the bills remain the property of the customer. If the account becomes overdrawn, the banker has a lien upon them to that extent. If the bills are discounted. they become the absolute property of the banker.
Bills left for collection, even if indorsed to the banker. do not form part of his assets,
and if the banker becomes bankrupt the owner may, subject to any lien of the banker, recover the bills.
When bills sent by correspondents for collection are accompanied by instructions, such as. " Deliver documents against pay ment," " Incur no expense," " If unpaid do not protest," the instructions must be care fully attended to. Bankers usually keep a separate bill book in which particulars of bills for collection are entered. (See BILLS FOR COLLECTION Boox,) When a bill is sent out for collection, many bankers place the word " received " upon the back of the bill as a safeguard against the loss of the bill. A receipt by a banker upon a bill is exempt from stamp duty, but a receipt upon a bill by any other person is subject to the duty of one penny (see RECEIPT). (See BILL OF EXCHANGE.)