Quiz 17: Checks and Banking in the Digital Age

Business

img , Mr L is liable towards Mr N because in cases of civil suits, the drawer (Mr L) is liable to payee (Mr N) or to any holder of the check which is not honoured. img , Mr L could be subjected to criminal prosecution but only if his intention to cause fraud for issuing a bad check can be proved in the court of law.

A certified check is accepted in advance by the bank when it is presented for the payment. This happens because in case of this type of check, a bank verifies the existence of sufficient funds in advance and certifies the check when it is written. This fund is then kept aside in bank's internal account till the time the check is returned or cashed by the payee.

A certified check is a personal check written by an account holder, drawn on the holder's account and is guaranteed by the bank. With a certified check, the bank validates that the signature is genuine and that the account holder had enough money in the account to cover the check at the time it was written. The bank then keeps aside the full amount of the check to make sure that the funds will be available when the check is cashed or deposited. A certified check is the type of check that a bank agrees to accept in advance when it is presented for payment.

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