Asked by Eddie Sanchez on Jun 16, 2024
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When a depositary bank receives a check,it must present the check at the payor bank and cannot send it through intermediary banks to reach the payor bank.
Depositary Bank
A financial institution that holds assets or securities in custody for its clients, facilitating trading and safekeeping of these assets.
Payor Bank
The bank on which a check is drawn, responsible for paying the check when it is presented for payment.
Intermediary Banks
Banks that act as mediators in financial transactions between counterparties, especially in international banking when a direct transaction is not possible.
- Gain insight into the methodologies involved in the negotiation and transferability of negotiable instruments.
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Learning Objectives
- Gain insight into the methodologies involved in the negotiation and transferability of negotiable instruments.
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