Returning Bank Law and Legal Definition
According to 12 USCS § 5002 (3) (D), [Title 12. Banks and Banking; Chapter 50. Check Truncation] “(i) In general. The term returning bank means a bank (other than the paying or depositary bank) handling a returned check or notice in lieu of return.
(ii) Treatment as collecting bank. No provision of this Act [12 USCS §§ 5001 et seq.] shall be construed as affecting the treatment of a returning bank as a collecting bank for purposes of section 4-202(b) of the Uniform Commercial Code.”