Asked by Alexander Orton on Jun 04, 2024
Verified
Mark gives a $3,000 check drawn on Access Bank to Acme Industries who mislays the check for three weeks.When Acme finds the check,they request that Access Bank certify the check.Access declines to do so,and Acme tells Mark that the check has been dishonored.Mark contacts Access who agrees to certify the check.Access subsequently wants to withdraw their certification,since Mark has insufficient funds in his account.Discuss the legal issues contained in their situation.
Certify
To officially acknowledge or attest to the truth, accuracy, or authenticity of something through documentation.
Dishonored
A term used to describe a financial instrument, like a cheque or promissory note, that has been presented for payment but was refused.
Insufficient Funds
A situation where one's bank account does not have enough money to cover transactions.
- Understand the concept and legal requirements of certification of checks.
Verified Answer
JM
jason mcelyeaJun 10, 2024
Final Answer :
Access is not obligated to certify the check and failure to do so is not a dishonor of the check.Once Access certifies the check,they cannot rescind their certification and Mark is discharged from any liability on the check.Access must pay the check when presented,but may take legal action against Mark.
Learning Objectives
- Understand the concept and legal requirements of certification of checks.