Fact Pattern 27-2B
Thom draws a check,on his account in State Bank in New York,payable to Digital Computers,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 27-2B.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,whether or not it was a "banking" day.
C)before noon of the next banking day.
D)within five business days.

Question

Fact Pattern 27-2B 
Thom draws a check,on his account in State Bank in New York,payable to Digital Computers,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 27-2B.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,whether or not it was a "banking" day.
C)before noon of the next banking day.
D)within five business days.

Quizplus · Accepted Answer

When a bank receives a check, it is required to pass it on before midnight of the next banking day. In this case, Digital's bank (First National Bank) was required to pass on the check to the Federal Reserve Bank of San Francisco before the next banking day's midnight.