Asked by Kaelyn Jordan on Apr 29, 2024
Verified
In the check collection process,the depositary bank cannot also be the payor bank.
Depositary Bank
A financial institution that holds and manages the deposits of securities for investors, facilitating the trading of these securities.
Payor Bank
The bank on which a check is drawn and that is responsible for paying the amount of the check to the holder.
Collection Process
The steps taken by creditors or agencies to recover debts owed by individuals or businesses, often involving contacting the debtor, negotiating payment plans, and possibly legal action.
- Comprehend the roles and responsibilities of parties involved in the negotiation and endorsement of negotiable instruments.
Verified Answer
SG
Skreeechis GamingMay 02, 2024
Final Answer :
False
Explanation :
In the check collection process,sometimes the depositary bank is the same bank as the payor bank.When this is the case,the check is referred to as an "on-us" item.
Learning Objectives
- Comprehend the roles and responsibilities of parties involved in the negotiation and endorsement of negotiable instruments.