Asked by Tanner Lloyd on May 07, 2024
Verified
If First Bank receives a check for collection on Friday at 4:30 p.m., it does not have to present the check to the payor bank by midnight Saturday.
Payor Bank
The bank that is responsible for paying the check or draft as specified by the person making the payment.
Midnight Deadline
The end point, usually referred to the close of business, or 11:59 PM, by which a particular task or obligation must be completed.
- Realize the processes and timelines for check collection and the impact on depositor’s accounts.
Verified Answer
MS
Michaela SabrsulaMay 14, 2024
Final Answer :
True
Explanation :
According to the Uniform Commercial Code (UCC), banks are not required to present checks for payment on non-business days. Since Saturday is typically considered a non-business day for banks, First Bank would not be required to present the check to the payor bank by midnight Saturday.
Learning Objectives
- Realize the processes and timelines for check collection and the impact on depositor’s accounts.