When there are insufficient funds in a drawer's account,and a check is presented to be honored,the bank can:

A) honor the check,and charge the customer on the next deposit.
B) return the check,and charge a penalty.
C) hold the check and payment,even if the holder suffers a loss against the drawer.
D) charge a fee to the holder in due course and to the drawer.

Insufficient Funds

A situation where one's bank account does not have enough money to cover checks or electronic transfers made against it, potentially resulting in a bounced check or declined transactions.

Drawer's Account

In financial terms, the account belonging to the person who writes a check or draft instructing a bank to pay a designated amount of money.

Honor The Check

The act of a bank or financial institution completing the transaction by paying the amount specified on a check from the payer's account to the payee or holder.