Asked by Samuel Bruce on May 07, 2024
Verified
List the requirements generally required for a check to be considered properly payable.
Properly Payable
Properly payable refers to the condition under which a financial instrument, such as a check, meets all requirements for payment to the rightful party without dispute.
Requirements
Conditions or specifications that must be met or complied with.
- Identify the functions and duties of banks in the handling of checks.
- Determine the circumstances that render a check stale and analyze the effects of timing upon its presentation.
Verified Answer
FL
Fareeza LokmanMay 10, 2024
Final Answer :
Under the properly payable rule,a bank has a duty to pay checks from its customer's account as long as the checks are "properly payable." In other words,a check must be authorized by the drawer and must not violate an agreement between the bank and the customer.Generally,for a check to be considered properly payable,it must:
(1)Have the drawer's authorized signature on the check;
(2)Be paid to a person entitled to enforce the check;
(3)Not have been altered;
(4)Not have been completed by addition of unauthorized terms if the check was incomplete;
(5)Be paid on or after the date of the check; and
(6)Not be subject to a stop payment from the drawer.
(1)Have the drawer's authorized signature on the check;
(2)Be paid to a person entitled to enforce the check;
(3)Not have been altered;
(4)Not have been completed by addition of unauthorized terms if the check was incomplete;
(5)Be paid on or after the date of the check; and
(6)Not be subject to a stop payment from the drawer.
Learning Objectives
- Identify the functions and duties of banks in the handling of checks.
- Determine the circumstances that render a check stale and analyze the effects of timing upon its presentation.