David wrote a check to Sage for $3,000 on his account at Greater Good Bank. He then took it to his bank for certification. The bank wrote "certified" on the face of the check. David then gave the check to Sage . When Sage took the check to Greater Good Bank, they refused to pay, claiming that there was not enough money in David's account to cover the check. Which of the following is correct?
A) Greater Good Bank is primarily liable on the check, because it has already accepted it.
B) Sage has no recourse under these circumstances.
C) David is secondarily liable on the check, because he is the drawer.
D) Greater Good Bank must pay the check, but they may charge David a fee to do so.

Question

David wrote a check to Sage for $3,000 on his account at Greater Good Bank. He then took it to his bank for certification. The bank wrote "certified" on the face of the check. David then gave the check to Sage . When Sage took the check to Greater Good  Bank, they refused to pay, claiming that there was not enough money in David's account to cover the check. Which of the following is correct?
A) Greater Good  Bank is primarily liable on the check, because it has already accepted it.
B) Sage has no recourse under these circumstances.
C) David is secondarily liable on the check, because he is the drawer.
D) Greater Good  Bank must pay the check, but they may charge David a fee to do so.

Quizplus · Accepted Answer

When a bank certifies a check, it accepts responsibility to pay it, making the bank primarily liable.

David Wrote a Check to Sage for $3,000 on His