First Bank has determined that 2:00 p.m. is the cutoff hour for handling checks, and that all checks received after this deadline will be posted to the customer's account the following day. Ronald, an attorney, is irate about the bank's policy and tells the clerk that its policy violates the UCC. Is he correct?

A) Yes, the UCC does not allow banks to establish cutoff hours for handling checks.
B) Yes, although the UCC allows banks to establish cutoff hours for handling checks, the earliest a bank may require for such a policy is 4:00 p.m.
C) No, the UCC allows banks to establish cutoff hours for making entries on their books.
D) No, the UCC specifically states that all banks must establish a 2:00 p.m. cutoff hour for handling checks.
E) No, the UCC is silent regard cutoff hours for banks.

Question

Alida Torres · Accepted Answer

Final Answer : C, Explanation :  The UCC allows banks to establish cutoff hours for making entries on their books, which includes handling checks. This means that the bank's policy of a 2:00 p.m. cutoff hour does not violate the UCC.

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