Asked by Rivaldo English on May 28, 2024
Verified
After initially receiving notice of dishonor,when must parties other than a collection bank give notice of dishonor to a secondarily liable party?
A) Before midnight of the next day
B) Within 48 hours
C) Within 7 days
D) Within 10 days
E) Within 30 days
Notice of Dishonor
A formal notification indicating that a financial instrument, like a check or draft, has been presented for payment and refused.
Collection Bank
A financial institution involved in processing checks and payments on behalf of other banks or entities.
- Identifying the decrees and regulations concerning negotiable instruments, including their conveyance, endorsement, and default.
Verified Answer
AH
Ayden HowellMay 28, 2024
Final Answer :
E
Explanation :
If the party that dishonors an instrument is not a collection bank,it must give notice of the dishonor within 30 days of the day on which the party receives notice of dishonor.
Learning Objectives
- Identifying the decrees and regulations concerning negotiable instruments, including their conveyance, endorsement, and default.
Related questions
If the Party That Dishonors an Instrument Is a Collection ...
Which of the Following May Be Considered a Commercially Reasonable ...
According to the Uniform Commercial Code,when Does a Person Have ...
Under the Uniform Commercial Code,how Can a Proper Presentment Be ...
If an Instrument Is Not an Unaccepted Draft Presented to ...