Asked by Christin Evans on Jun 04, 2024
Verified
A customer can refuse to accept a substitute check created from the digital image of an original check as proof of payment.
Substitute Check
A negotiable instrument that is a paper reproduction of the front and back of an original check and contains all of the same information required on checks for automated processing.
Digital Image
A representation of a visual image in a format that can be stored, viewed, or transmitted electronically.
Original Check
A document that is written, signed, and ready for use or deposit as payment.
- Comprehend the meaning and consequences of a bank's certification of a check.
- Acquire knowledge on the legal accountabilities of banks faced with forged signatures of the drawer.
Verified Answer
JT
Johanz TusiimeJun 09, 2024
Final Answer :
False
Explanation :
Under the Check 21 Act, a substitute check that accurately represents the original check and includes all the information from the front and back of the original check is considered the legal equivalent of the original check and can be used as proof of payment.
Learning Objectives
- Comprehend the meaning and consequences of a bank's certification of a check.
- Acquire knowledge on the legal accountabilities of banks faced with forged signatures of the drawer.