Asked by brianna mcrae on Jul 06, 2024
Verified
Gary writes a check drawn on Hill Bank for $400 "payable to Ian" on May 1. Gary dies on May 3. Ian presents the check to the bank on May 5. Unaware of Gary's death, the bank
A) must certify the check.
B) may pay the check.
C) must consult with Gary's heirs before paying the check.
D) can do nothing until Ian claims an interest in the account.
Certify
To officially recognize, attest, or confirm something as true, accurate, or within a set of standards.
Heirs
Individuals legally entitled to inherit a deceased person's assets under statutory or testamentary succession laws.
- Determine and describe the legal ramifications associated with the issuance, dishonor, and settlement of checks as per the Uniform Commercial Code.
Verified Answer
RN
Rylan NordbeckJul 10, 2024
Final Answer :
B
Explanation :
The bank may pay the check because checks are generally considered valid for a certain period after they are written, and the death of the drawer (Gary) does not immediately invalidate the check or prevent the bank from honoring it.
Learning Objectives
- Determine and describe the legal ramifications associated with the issuance, dishonor, and settlement of checks as per the Uniform Commercial Code.
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