Fact Pattern 28-2B (Questions B16-B18 apply)
Belle draws a check on her account in Capital Credit Bank in New York, payable to Distribution Marketing, Inc., in San Francisco. Distribution Marketing deposits the check in its ac?count at Equity Bank. Equity Bank deposits the check in the Federal Reserve Bank of San Francisco, which transfers it to the Federal Reserve Bank of New York. That Federal Reserve Bank sends the check to Capital Credit.
-Refer to Fact Pattern 28-2B. When Equity Bank received the check, it was required to pass it on
A) before midnight of the next banking day.
B) before midnight of the next day, whether or not it was a "banking" day.
C) before noon of the next banking day.
D) within five business days.

Question

Quizplus · Accepted Answer

Under the Uniform Commercial Code (UCC), a bank is required to pass on a check it receives for deposit before midnight of the next banking day. Equity Bank received the check from Distribution Marketing and was therefore required to pass it on to the Federal Reserve Bank of San Francisco before midnight of the next banking day.

Fact Pattern 28-2B (Questions B16-B18 Apply)