Fact Pattern 19-2 (Questions 27-29 apply)
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. First National 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 State Bank.
-Refer to Fact Pattern 19-2.When Digital's 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, even if it was not a "banking" day.
C) before noon of the next banking day.
D) within five business days.

Question

Fact Pattern 19-2 (Questions 27-29 apply) 
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. First National 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 State Bank.
-Refer to Fact Pattern 19-2.When Digital's 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, even if it was not a "banking" day.
C) before noon of the next banking day.
D) within five business days.

Quizplus · Accepted Answer

According to the Uniform Commercial Code, a bank receiving a check for deposit is required to pass it on before midnight of the next banking day.

Fact Pattern 19-2 (Questions 27-29 Apply)