Where the duty of collection is to be wholly performed in one state where both the owner of the collection and the bank reside, the relation is to be governed by the law of that state; but where a bank in one state sends a draft into another state to a bank for collection, the relation is governed by the law of the latter state, if the collection is to be made therein; 1 otherwise it is to be governed by the law of the state where the contract is to be performed.2

3 Jagger v. German Am. Bank, 53 Minn. 386. See the form of pleading at common law on the bailment, note 7 to Sec. 184, post, and note 2 to Sec. 186, post

4 Power v. First Nat. Bank, 6 Mont. 251; Central Georgia Bank v. Cleveland Nat Bank, 59 Ga. 667.

5 Drown v. Pawtucket Bank, 15 Pick. 88.

6 People v. Merchants' Bank, 78 N. Y. 269. This is on the supposition that the collection is honored and paid. But a special contract would make the proceeds a special deposit.

7 Titus v. Mechanics' Nat. Bank, 35 N. J. Law, 588

8 Exchange Nat. Bank v. Third Nat. Bank, 112 U. S. 288; Mechanics' Bank v. Merchants' Bank, 6 Met. 13; Merchants' Nat. Bank v. Goodman, 109 Pa. 426. But if the deposit is a bailment no consideration is needed beyond the delivery, except to make the bank liable for ordinary diligence.