Asked by Lauren Adele on Jul 17, 2024
Verified
Oliver wrote a check to Greg Motors for $4,000 drawn on Uphill Bank in payment for a secondhand car.Greg Motors deposited the check in its account at Seventh Day Bank,which sends the check to Uphill Bank for collection.Oliver's car broke down before he reached home that evening,and he contacted his bank to stop payment on the check.Discuss what Uphill bank must do with the check to ensure a stop payment.
Stop Payment
An order issued to a bank by an account holder not to pay a specific check that has been written and issued but not yet cashed.
Secondhand Car
A vehicle that has had one or more previous owners before the current possession.
- Explain the procedure and schedules linked to halting a check's payment.
- Elucidate the obligations of banking institutions in regard to accepting or rejecting checks, which includes those that are postdated and those issued from an account of an individual who has passed away.
Verified Answer
AC
Amazon CueenJul 18, 2024
Final Answer :
Uphill Bank must return the check to Seventh Day Bank,with a notation that payment has been stopped,before midnight of the day that it received the check.If Uphill Bank keeps the check longer than that,it will be liable for payment.
Learning Objectives
- Explain the procedure and schedules linked to halting a check's payment.
- Elucidate the obligations of banking institutions in regard to accepting or rejecting checks, which includes those that are postdated and those issued from an account of an individual who has passed away.