Asked by Hannah Kristen on Jun 29, 2024
Verified
While receiving a properly drawn and payable check on a person's account,which of the following circumstances make it a necessity for the bank to honor the check?
A) When the check is stale.
B) When there are sufficient funds in the account.
C) When there is a stop payment order.
D) When a postdated check is presented before the date of the check.
Properly Drawn
Pertains to documents or legal instruments that are prepared and executed correctly and according to all requisite legal standards.
Sufficient Funds
The availability of enough money in an account to cover checks or withdrawals.
Honor
The act of fulfilling or adhering to an agreement, contract, or request, demonstrating integrity and respect.
- Comprehend the legal connections and duties between a depositor and a bank, including applicable laws.
- Recognize the importance of proper communication and timing for effective banking instructions, including stop-payment orders and check processing.
Verified Answer
ZK
Zybrea KnightJul 04, 2024
Final Answer :
B
Explanation :
When a bank receives a properly drawn and payable check on a person's account and there are sufficient funds to cover the check,the bank is under a duty to pay it.
Learning Objectives
- Comprehend the legal connections and duties between a depositor and a bank, including applicable laws.
- Recognize the importance of proper communication and timing for effective banking instructions, including stop-payment orders and check processing.