Identify the statement that holds true of revised Article 3 of the Uniform Commercial Code regarding checks.
A) Under revised Article 3, an instrument does not qualify as a check if it contains the engraving "money order" on its face.
B) Revised Article 3 prevents an instrument from meeting the "unconditional promise" if it requires a countersignature of a person whose specimen signature appears on the draft.
C) Under revised Article 3, a payor bank may pay a postdated check before the stated date unless the drawer has notified the bank of postdating pursuant to a procedure set out in the Code.
D) Revised Article 3 states that an instrument which names a fixed time for payment should not contain a clause permitting the time for payment to be accelerated at the option of the maker.

Question

Quizplus · Accepted Answer

Under revised Article 3 of the Uniform Commercial Code, a payor bank (a bank that is the drawee of a draft) may pay a postdated check before the stated date unless the drawer has notified the bank of postdating pursuant to a procedure set out in the Code. The procedure is similar to that required when a drawer wants the drawee bank to "stop payment" on a check.

Identify the Statement That Holds True of Revised Article 3