Asked by Katherine Fortune on Jul 06, 2024
Verified
If a bank pays a stale check in good faith but without consulting the customer, the bank has no right to charge the customer's account for the amount.
Stale Check
A check, other than a certified check, that is presented for payment more than six months after its date.
Good Faith
A concept involving an honest intention to act without taking an unfair advantage over another party, typically implied in agreements or transactions.
- Comprehend the regulations regarding the payment of stale checks by banks.
Verified Answer
NV
Nashali Velez MartinezJul 12, 2024
Final Answer :
False
Explanation :
Banks can charge the customer's account for the payment of a stale check if it was paid in good faith, as the bank's decision to honor the check does not necessarily remove their right to debit the customer's account for the check amount.
Learning Objectives
- Comprehend the regulations regarding the payment of stale checks by banks.