Fact Pattern 18-2
Tom draws a check,on his account in State Bank in New York,payable to Digital Media,Inc.,in San Francisco.Digital deposits the check in its ac-count at First National Bank.
-Refer to Fact Pattern 18-2.Tom's bank is
A)the cashing bank.
B)the depositary bank.
C)the intermediary bank.
D)the payor bank.

Question

Quizplus · Accepted Answer

Tom's bank is the payor bank because it is the bank on which the check is drawn and is responsible for paying the check.

Fact Pattern 18-2 Tom Draws a Check,on His Account in State Bank in State