This section is from the book "Banking Practice And Foreign Exchange", by Howard McNayr Jefferson. Also available from Amazon: Banking Practice And Foreign Exchange.
When a collection item has been paid, it is customary for the bank to which it was sent to advise the bank from which it came that it has been paid and credited, if reciprocal accounts are kept.
From
The Northern Bank Op New York
Hamilton-Port Morris Branch
Reason As Stated Below:
Guarantee Op Endorsement
Sent Wrong
Not Sufficient Funds
Endorsement Missing
Date
Signature Incorrect
Bane Stamp Missing
Filling
No Account
Account Closed
Payment Stopped
Maker Deceased
Drawn Against Uncollected Deposit
Returned Through Exchanges By Permission
Figure 123. Unpaid Slip.
If there are no mutual accounts, a draft is enclosed less the collection charges. Regular printed forms are used for this purpose. An ordinary one is shown in Figure 122 on page 256.
When items are unpaid it is customary to attach a small paster to the item itself similar to the one shown in Figure 123 on page 258. A check mark is made opposite the reason given for the refusal of the item. A simple memorandum is added to a regular letter of advice that such and such items are returned unpaid with reasons as noted.
It is frequently necessary to recall items which have been sent for collection. A simple letter form providing spaces for the name of the item, the amount, when due, where payable and date of letter on which the item was sent, is all that is required.
 
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