Gary writes a check drawn on Hill Bank for $400 "payable to Ian" on May 1. Gary dies on May 3. Ian presents the check to the bank on May 5. Unaware of Gary's death, the bank

A) must certify the check.
B) may pay the check.
C) must consult with Gary's heirs before paying the check.
D) can do nothing until Ian claims an interest in the account.

Question

Rylan Nordbeck · Accepted Answer

Final Answer : B, Explanation :  The bank may pay the check because checks are generally considered valid for a certain period after they are written, and the death of the drawer (Gary) does not immediately invalidate the check or prevent the bank from honoring it.

Definitions

Learning Objectives

Learning Objectives

Related questions