Kelly wrote a check to Trish, which Trish immediately changed from $20 to $120.She negotiated the check to Carl for value, who in turn took it to Kelly's bank for certification.Kelly's bank checked her account and certified the check since there were sufficient funds to cover the check.Thereafter, Carl gave the check to General Motors as part of the down payment for his car.G.M.presents the check to Kelly's bank for payment and they discover the alteration.The bank:
A) can sue G.M. for breach of presentment warranty of no alteration.
B) can refuse to pay G.M. more than $20.
C) must pay G.M. $120 and cannot sue them for breach of warranty.
D) can charge Carl's account for $120.

Question

Quizplus · Accepted Answer

Once a check is certified by the bank, the bank guarantees the amount on the check and cannot refuse payment or claim breach of warranty for alterations discovered after certification.

Kelly Wrote a Check to Trish, Which Trish Immediately Changed