Asked by Jorge Ortez on Jul 25, 2024
Verified
When a check is deposited in the payee's own account in a depository bank,any settlement given by the depository bank is provisional until the next banking day at midnight.
Depository Bank
A financial institution where deposits are made, held, and managed; also facilitates financial transactions for clients.
Settlement
An agreement reached between parties in a dispute, where usually one party agrees to provide compensation to the other, ending the dispute outside of court.
- Understand the consequences of bank commitments and consumer privileges concerning check deposits and withdrawals.
Verified Answer
TJ
Taylor JabczenskiJul 30, 2024
Final Answer :
False
Explanation :
Settlement given by the depository bank is provisional until the paying bank has paid the check or until the check has been otherwise finally settled. This does not necessarily align with the next banking day at midnight.
Learning Objectives
- Understand the consequences of bank commitments and consumer privileges concerning check deposits and withdrawals.