Quiz 31: Checks and Funds Transfers

Business

A certified check from the bank is a check the bank accepted for payment. Under the Uniform Commercial Code, once the bank accepts a check for payment it becomes primarily liable, meaning that they are responsible to make sure the check presented to them is paid. This discharges the endorsements condition such as the endorser which wrote "collection guaranteed" and "payment guaranteed" would not have the first responsibility, and while another endorser wrote "without recourse" the bank may still be sued as they have accepted the check for payment; hence, the correct answer is d.

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A certified check from the bank is a check the bank accepted for payment. Under the Uniform Commercial Code (UCC), once the bank accepts a check for payment it has primary liability; they are responsible to make sure the check presented to them is paid. However, B, maker of the check, has secondary liability. Hence, the answer is c.

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