A drawee bank is primarily liable after it accepts the check.

Drawee Bank

is the bank upon which a check is drawn, meaning it is the bank where the check issuer has an account from which the check amount is to be paid.

Primarily Liable

The main responsibility or obligation to pay a debt or fulfill a contractual duty.

Differentiate between primary and secondary liability in the context of negotiable instruments.

Verified Answer

Final Answer :

True

Explanation :

Once the drawee bank accepts the check, it becomes primarily liable for paying the amount stated on the check.

Learning Objectives

Differentiate between primary and secondary liability in the context of negotiable instruments.