Asked by jennifer ocampo on Apr 27, 2024
Verified
Since Boise Bank's decision is "without recourse," Boise Bank must notify Joe by midnight of the next banking day.
Without Recourse
A term indicating that the holder of a financial instrument cannot demand payment from the issuer in the case of default.
Banking Day
A business day during which financial institutions are open for business with the public.
- Recognize the legal outcomes of dishonored drafts and the implications of "without recourse" endorsements.
Verified Answer
RK
Rahul KhatriApr 29, 2024
Final Answer :
True
Explanation :
According to the Uniform Commercial Code (UCC), a bank's decision to dishonor a check is "without recourse," meaning the bank cannot be held liable for the payment. In this case, the UCC also requires the bank to notify the customer, in this case Joe, by midnight of the next banking day after the decision is made.
Learning Objectives
- Recognize the legal outcomes of dishonored drafts and the implications of "without recourse" endorsements.