There goes the float, particularly for out-of-town checks
that used to have a minimum two- to three-day float, not counting time spent in the mail.
To avoid such exchange charges, out-of-town checks were usually collected through the correspondent system.
This method for collecting out-of-town checks involved a lot of paperwork.
The five-day rule on out-of-town checks
doesn't seem to be a problem.
The New York plan attempted to eliminate altogether the use of out-of-town checks for settlement of payments in New York City.
Banks in some cities attempted to cooperate in coping with the challenge of collecting out-of-town checks.
Their objective was to eliminate the use of out-of-town checks for payments in New York City.
The cost of collecting checks, including the cost (borne primarily by correspondent banks) of routing out-of-town checks to paying banks.